Multiple Choice
Consider the prisoner's dilemma model where two criminals have two options (confess or deny) , and each criminal must make their decision without speaking to the other criminal first. If they both confess they each get 3 years, if only one confesses then he gets 1 and his partner gets 10, and if neither confesses then they each get 0. They are in fact both guilty. In this game, the Nash equilibrium is where
A) both confess.
B) neither one confesses.
C) only one will confess.
D) It is impossible to say.
Correct Answer:
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