Competition versus Collusion: The Prisoners’ Dilemma

1 year ago
Microeconomics

Noncooperative game – Game in which negotiation and enforcement of binding contracts are not possible.

Payoff matrix – Table showing profit (or payoff) to each firm given its decision and the decision of its competitor.

Prisoners’ dilemma – Game theory example in which two prisoners must decide separately whether to confess to a crime; if a prisoner confesses, he will receive a lighter sentence and his accomplice will receive a heavier one, but if neither confesses, sentences will be lighter than if both confess.

Bijay Satyal
Dec 1, 2021
More related questions

Questions Bank

View all Questions

Top