The prisoner's dilemma is used to analyse business situations in which one firm acts first and then other firms respond.

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The prisoner's dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interest to do so. It is not specifically about one firm acting first and then other firms responding, but rather about the strategic decisions made by two parties in a situation where their outcomes depend not only on their own decisions but also on those of the other party.

The Prisoner's Dilemma Is Used to Analyse Business Situations in Which