-The table above shows the payoff matrix offered to two suspected criminals,Bonnie and Clyde.The payoffs are the years they will spend in prison.The suspected criminals are not allowed to communicate.Given the information in the payoff matrix,the Nash equilibrium is that Bonnie ________ and Clyde ________.
A) confesses; denies
B) confesses; confesses
C) denies; denies
D) denies; confesses
E) denies; either confess or denies, either outcome is consistent with the Nash equilibrium.

Question

-The table above shows the payoff matrix offered to two suspected criminals,Bonnie and Clyde.The payoffs are the years they will spend in prison.The suspected criminals are not allowed to communicate.Given the information in the payoff matrix,the Nash equilibrium is that Bonnie ________ and Clyde ________.
A) confesses; denies 
B) confesses; confesses 
C) denies; denies 
D) denies; confesses 
E) denies; either confess or denies, either outcome is consistent with the Nash equilibrium.

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. In this scenario, if one confesses and the other denies, the confessor gets a lighter sentence while the denier gets the heaviest sentence. If both deny, they get moderate sentences, but if both confess, they get a heavier sentence than if they both denied but lighter than if one betrays the other. Confessing is each player's best response to the other's action, making "both confess" the Nash equilibrium.

-The Table Above Shows the Payoff Matrix Offered to Two