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 equilibrium for this game?

Question

Quizplus · Accepted Answer

Both confess is the equilibrium because it is the only outcome where neither player can improve their outcome by changing their strategy. If Ann confesses, Lynn's best strategy is to confess as well, since she will receive a shorter sentence than if she does not confess. If Ann does not confess, Lynn's best strategy is still to confess, since she will receive a shorter sentence than if she does not confess.

Ann and Lynn Have Been Arrested by the Police, Who