The following matrix represents the payoffs to two students who have been caught cheating in a class.

-Refer to Table .What will be the Nash equilibrium if there is no interaction between the two students?
A)Student A will confess while Student B will remain silent.
B)Student B will confess while Student A will remain silent.
C)Both the students will confess.
D)Both the students will remain silent.

Question

The following matrix represents the payoffs to two students who have been caught cheating in a class.

-Refer to Table .What will be the Nash equilibrium if there is no interaction between the two students?
A)Student A will confess while Student B will remain silent. 
B)Student B will confess while Student A will remain silent. 
C)Both the students will confess. 
D)Both the students will remain silent.

Quizplus · Accepted Answer

In a scenario without interaction between the two students, each student will aim to minimize their own potential punishment without knowing the other's choice. Assuming rational behavior and self-interest, confessing becomes the dominant strategy for both, as it ensures a lesser sentence regardless of the other's decision. This leads to both students confessing, which is a Nash equilibrium because neither has anything to gain by unilaterally changing their strategy given the strategy of the other.

The Following Matrix Represents the Payoffs to Two Students Who