Caven and John have been arrested by the police,who have evidence that will convict them of robbing a bank.If convicted,each will receive a sentence of 6 years for the robbery.During questioning,the police suspect that Caven and John are responsible for a series of bank robberies.If both confess to the series,each will receive 12 years in jail.If only one confesses,he will receive 4 years and the one who does not confess will receive 14 years.What is the equilibrium for this game?

Question

Quizplus · Accepted Answer

If both Caven and John deny the series, they will receive 6 years each for the robbery. However, if one confesses and the other denies, the confessor will only receive 4 years while the denier will receive 14 years. This creates an incentive for each of them to confess and receive a sentence of 12 years. Therefore, the Nash equilibrium for this game is for both Caven and John to confess.

Caven and John Have Been Arrested by the Police,who Have