Table 12.1 Utility Payoffs to Thief 1 and Thief 2 in a Classic Prisoners' Dilemma Game Payoffs are given as utility where U = 10-years in Jail -According to,if Thief 1 confesses and Thief 2 remains silent to the crime,how many years in jail will each thief serve?

Question

Quizplus · Accepted Answer

If Thief 1 confesses and Thief 2 remains silent, Thief 1 will go free and Thief 2 will be sentenced to 10 years in jail. However, if both remain silent, they will each serve 2 years in jail. Hence, Thief 1's best decision is to confess, because it will result in him serving 0 years in jail. Similarly, Thief 2's best decision is to remain silent because it will result in him serving 2 years in jail instead of 10 years if he confesses. Thus, the equilibrium outcome is that Thief 1 confesses and Thief 2 remains silent, resulting in Thief 1 serving 0 years in jail and Thief 2 serving 10 years in jail.

Table 12.1 Utility Payoffs to Thief 1 and Thief 2 in a in a Classic