The prisoners' dilemma shows that in a Nash equilibrium:
A)neither player can have a better result than the other.
B)sometimes players do not reach the optimal outcome.
C)only an irrational strategy will lead to an outcome worse than the optimal outcome.
D)each player acting independently will lead to the optimal outcome.

Question

Quizplus · Accepted Answer

The prisoners' dilemma shows that in a Nash equilibrium, players may not reach the optimal outcome because each player's strategy is based on the assumption that the other player will act in their own self-interest, leading to a suboptimal outcome for both players. Therefore, sometimes players do not reach the optimal outcome. The prisoners' dilemma demonstrates that rational individuals may not cooperate, resulting in a suboptimal outcome for both parties. Although each player could improve their outcome by cooperating, neither can trust that the other will do the same, resulting in a non-cooperative Nash equilibrium. Therefore, option B is correct, as sometimes players do not reach the optimal outcome.

The Prisoners' Dilemma Shows That in a Nash Equilibrium