Which of the following is true of a prisoner's dilemma game?
A)It does not have an equilibrium.
B)It has a dominant-strategy equilibrium.
C)It does not have a Nash equilibrium.
D)It ensures better payoffs to the players compared to other games.

Question

Quizplus · Accepted Answer

In a prisoner's dilemma game, there exists a dominant-strategy equilibrium where each player chooses the strategy that gives them the highest payoff regardless of what the other player chooses. This is the Nash equilibrium in which both players end up choosing the strategy that leads to a suboptimal outcome for both of them. The game can be viewed as a situation where each player has an incentive to defect and act in their own self-interest, leading to a worse outcome for both players compared to if they had cooperated. Therefore, option B is correct. Options A and C are incorrect as a prisoner's dilemma game does have a Nash equilibrium, though it is not optimal. Option D is incorrect as prisoner's dilemma games often lead to a worse outcome for both players.

Which of the Following Is True of a Prisoner's Dilemma