Ann and Lynn 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 Ann and Lynn 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, she will receive 4 years and the one who does not confess will receive 14 years. What is the Nash equilibrium for this game?
A) Both confess.
B) Lynn confesses and Ann does not confess.
C) Neither confesses.
D) Ann confesses and Lynn does not confess.

Question

Quizplus · Accepted Answer

The Nash equilibrium is when both Ann and Lynn confess. In this scenario, neither can unilaterally change their strategy to get a better outcome given the strategy of the other. If one decides not to confess while the other does, the non-confessor would get a worse sentence (14 years), making confessing the dominant strategy for both.

Ann and Lynn Have Been Arrested by the Police, Who