-Refer to Figure b.What is the Nash equilibrium in problem 13?
A) Kate squeal, Alice squeal
B) Kate deny, Alice deny
C) Kate squeal, Alice deny
D) Kate deny, Alice squeal

Question

-Refer to Figure b.What is the Nash equilibrium in problem 13?
A) Kate squeal, Alice squeal 
B) Kate deny, Alice deny 
C) Kate squeal, Alice deny 
D) Kate deny, Alice squeal

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. In this scenario, if one prisoner squeals while the other denies, the squealer gets a better outcome (e.g., a reduced sentence). However, if both anticipate this and choose to squeal to avoid the worse outcome of being the only one to deny, the result is both squealing. This is the equilibrium because neither can unilaterally change their strategy without ending up in a worse position, making "Kate squeal, Alice squeal" the Nash equilibrium.

-Refer to Figure B