If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate,the decision-makers have escaped
A) the Folk Theorem
B) the law of large numbers
C) the Prisoner's dilemma
D) the paradox of large numbers
E) the strategy of recusal

Question

Quizplus · Accepted Answer

This scenario describes the Prisoner's Dilemma, in which both players would be better off cooperating in the long run but are tempted to defect in the short run. The one-time gain from defection is always less than the discounted present value of an infinite time stream of cooperative payoffs, but both players may defect out of fear that their opponent will defect as well. As a result, both players end up worse off than if they had cooperated.

If One-Time Gains from Defection Are Always Less Than the Discounted