-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.Which of the following statements correctly describes the equilibrium choices made by Bonnie and Clyde?
A) The Nash equilibrium is the best outcome for Bonnie and Clyde.
B) There is no equilibrium in this game.
C) In the Nash equilibrium, both Bonnie and Clyde deny committing the crime.
D) Bonnie and Clyde could improve upon the Nash equilibrium if they could communicate.
E) Bonnie and Clyde get the best outcome for themselves because they are not allowed to communicate.

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.Which of the following statements correctly describes the equilibrium choices made by Bonnie and Clyde?
A) The Nash equilibrium is the best outcome for Bonnie and Clyde. 
B) There is no equilibrium in this game. 
C) In the Nash equilibrium, both Bonnie and Clyde deny committing the crime. 
D) Bonnie and Clyde could improve upon the Nash equilibrium if they could communicate. 
E) Bonnie and Clyde get the best outcome for themselves because they are not allowed to communicate.

Quizplus · Accepted Answer

The Nash equilibrium occurs when each player's strategy is optimal, given the other player's strategy. In many games, including typical prisoner's dilemma scenarios, the Nash equilibrium is not the optimal collective outcome. If Bonnie and Clyde could communicate and trust each other, they could agree to both deny the crime, potentially leading to a better outcome for both, compared to the Nash equilibrium where they both confess to minimize their individual risks.

-The Table Above Shows the Payoff Matrix Offered to Two