The prisoners' dilemma is
A) an example of a duopoly game.
B) a theory about why firms break the law.
C) competition that can occur among firms in monopolistic competition.
D) an example of the monopolist charging high prices.
E) an example of a game that does not have a Nash equilibrium.

Question

Quizplus · Accepted Answer

The prisoners' dilemma is a classic example of a duopoly game, where two players (or firms) face choices with outcomes that depend on the actions of the other player. It illustrates the challenges of achieving the best collective outcome when individual incentives lead to suboptimal decisions for both parties.

The Prisoners' Dilemma Is