Solved

Fergie and Abdul Were Caught by the Police in the Vicinity

Question 82

Essay

Fergie and Abdul were caught by the police in the vicinity of a robbery site. The police have a strong feeling the two individuals are the actual robbers, but they do not have a way to prove it yet. In the absence of hard evidence, the prosecutor can convict them of only a minor offence, with only a year in prison. The police put the two in separate rooms and try to offer them incentives to confess: if one of the robbers does so, he would go
scot- free while the other goes to prison for 10 years. If both confess the prosecutor will be able to put both in prison for 5 years. As a result, each partner in crime has two options: to confess or to remain silent.
Note: here payoffs are in years of prison, so less is better.
a)Represent this game in normal form. Are there dominant strategies for these robbers?
b)What s the Nash equilibrium of this game?
c)How is this game called?
d)What exactly is the dilemma that the two robbers have? Is there a way to get around this problem

Correct Answer:

verifed

Verified

a)Confess is dominant strategy for each ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents