The Cournot and Bertrand models are examples of "prisoner's dilemma" games.

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Both Cournot and Bertrand models involve two firms competing in a market, where each firm must make a strategic decision on pricing or quantity. In both games, the firms have an incentive to produce or set prices in a way that maximizes their own profits, even though it may lead to lower overall profits for both firms. This is a classic example of a prisoner's dilemma situation where individuals pursuing their own self-interest leads to a suboptimal outcome for the group. This is true because in both the Cournot and Bertrand models, firms must make decisions based on their competitors' actions, leading to a situation where each firm's best strategy (maximizing profits) may not result in the best overall outcome for all firms involved. This is the classic setup for a prisoner's dilemma.

The Cournot and Bertrand Models Are Examples of "Prisoner's Dilemma