The term prisoners' dilemma refers to a game in which
A) there are no Nash equilibria.
B) there are no dominant strategies.
C) the payoff from playing the dominant strategy is the same for each player.
D) the payoff from playing the dominant strategy is not the highest payoff possible.

Question

Quizplus · Accepted Answer

The prisoners' 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. The dominant strategy for each player leads to a worse outcome than if they cooperated, meaning the payoff from playing the dominant strategy (defection) is not the highest payoff possible, which would be achieved through mutual cooperation.

The Term Prisoners' Dilemma Refers to a Game in Which