The prisoner's dilemma describes a strategic situation in which:
A) It is in the best interest of all players to cooperate.
B) Each player has a incentive to adopt a strategy that results in a less than optimal outcome.
C) There is a conflict between individual and joint incentives.
D) All of the above are correct.
E) None of the above are correct.

Question

Quizplus · Accepted Answer

The prisoner's dilemma is a classic example in game theory that illustrates how two individuals might not cooperate, even if it appears that it is in their best interest to do so. This situation occurs because each player has an incentive to betray the other, leading to a less than optimal outcome for both. Thus, it involves a conflict between individual and joint incentives, making all of the statements correct.

The Prisoner's Dilemma Describes a Strategic Situation in Which