In the Nash equilibrium of a prisoner's dilemma:
A)there is no cash left on the table.
B)there is unrealized opportunity for both to gain.
C)total economic surplus is maximized.
D)both players have equal payoffs.

Question

Quizplus · Accepted Answer

In the Nash equilibrium of a prisoner's dilemma both players play their dominant strategy and each earns less than if they both had played a dominated strategy.

In the Nash Equilibrium of a Prisoner's Dilemma