In the Prisoners' Dilemma game,
A) the Nash equilibrium is the only outcome that is not Pareto optimal.
B) neither player has a dominant strategy.
C) the Stackelberg equilibrium will be Pareto optimal if the game is played sequentially.
D) all possible outcomes are Nash equilibria.

Question

Quizplus · Accepted Answer

In the Prisoners' Dilemma game, the Nash equilibrium occurs when both players choose to defect, leading to an outcome that is not Pareto optimal because both players would be better off if they both cooperated. This contrasts with other outcomes where cooperation could lead to a Pareto improvement, making the Nash equilibrium unique in this regard.

In the Prisoners' Dilemma Game