The prisoner's dilemma demonstrates that
A)breaking out of prison may be too costly for most prisoners
B)the opportunity cost of being a prisoner is indeterminate
C)the dominant strategies followed by two prisoners may lead to disequilibrium that is unpredictable
D)the weak strategy may be followed by both prisoners if the opportunity cost is low
E)the dominant strategies followed by two players may lead to an equilibrium that is less not optimal for both players together

Question

Quizplus · Accepted Answer

The prisoner's dilemma shows that the dominant strategies followed by two players may lead to a Nash equilibrium where both players end up worse off than if they had cooperated. This illustrates a situation where pursuing self-interest can lead to a less optimal outcome for both parties. Therefore, E is the best choice as it captures this central idea of the prisoner's dilemma.

The Prisoner's Dilemma Demonstrates That