One lesson of the prisoner's dilemma is... Group of answer choices People may take actions that will lead to an outcome that is worse for everyone than another possible outcome. Cooperation is never possible. People should never try to work together. If there is one outcome that everyone prefers over another outcome, people will always take actions that lead to the better outcome.

One lesson of the prisoner's dilemma is... Group of answer choices People may take actions that will lead to an outcome that is worse for everyone than another possible outcome. Cooperation is never possible. People should never try to work together. If there is one outcome that everyone prefers over another outcome, people will always take actions that lead to the better outcome.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 2MC

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Table 15.4, Prisoner Dilemma. Suppose the game starts with both Jesse and Frank planning to “Stay Mum” in the lower right cell. Discuss how each player would evaluate the situation and decide whether to change decisions. If each player makes decisions to minimize the penalty, in which cell will this game end? Is there a Nash equilibrium?
Mary and Raj are the only two growers who provide organically grown corn to a local grocery store. Table below represents the choices available to Mary and Raj and the payoffs associated with each outcome. What is the best choice for Raj if he is sure that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoner’s dilemma result? (A = Work independently; B = Cooperate and Raise prices. Each results entry lists Raj earnings first, and Mary's earnings second.) Mary A B Raj A ($100, $100) ($200, $0) B ($0, $200) ($150, $150)
The outcome of a prisoners' dilemma game with a Nash equilibrium is that Question 20 options: both players confess. both players deny. there is no equilibrium. one player denies and one player confesses.
Consider a game between 2 payers (Ann and Bill) where each chooses between 3 actions (Up, Middle and Down). 1) Create a payoff matrix that reflects this. 2) Fill in payoff numbers that makes this game a Prisoner's Dilemma. 3) Explain why your game is a Prisoner's Dilemma.
A "Prisoner's Dilemma" is a situation in which both parties: a) have an incentive to cooperate(meaning working with the other criminal by keeping one's mouth shut) even without communication b) have an incentive to not cooperate(meaning working with other criminal by keeping one's mouth shut) even through cooperation would be mutually benefical. c)have no incentives to cooperate or not cooperate because either way they lose.
Two athletes of equal ability are competing for a prize of $12,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of XX dollars. Complete the following payoff matrix describing the decisions the athletes face. Enter Player One's payoff on the left in each situation, Player Two's on the right. Player Two's Decision Take Drug Don't Take Drug Player One's Decision Take Drug , , Don't Take Drug , , True or False: The Nash equilibrium is taking the drug if X is greater than $6,000. True False Suppose there was a way to make the drug safer (that is, have lower XX). Which of the following statements are true about the effects of making the drug safer? Check all that…
Which of the following is true of a prisoner's dilemma? Players will be best off if they cooperate, but they have an incentive to follow their individual self-interest. Players will be best off if they cooperate, and they will have enough incentive to do so. Players will be best off if they follow their individual self-interest, but they have an incentive to cooperate. Players will have no incentive to take any particular action.
Review Chapter 15, Table 15.4, Prisoner Dilemma. Suppose the game starts with both Jesse and Frank planning to “Stay Mum” in the lower right cell. Discuss how each player would evaluate the situation and decide whether to change decisions. If each player makes decisions to minimize the penalty, in which cell will this game end? Is there a Nash equilibrium?
Suppose two players play the prisoners' dilemma game a finite number of times, both players are rational, and the game is played with complete information, is a tit-for-tat strategy optimal in this case? Explain using your own words.
Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance enhancing drug. If one athlete takes the drug, and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars. a) Draw a 2×2 payoff matrix describing the decisions the athletes face. b) For what X is taking the drug the Nash equilibrium? c) Does making the drug safer (that is, lowering X) make the athletes better or worse off? Explain.
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain 24 units of utility from a vote for their positions (and lose 24 units of utility from a vote against their positions). However, the bother of actually voting costs each 12 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward. Mr. Ward Vote Vote Mrs. Ward Mr. Ward: -12, Mrs. Ward: -12 Don't Vote Mr. Ward: -24, Mrs. Ward: 12 The Nash equilibrium for this game is for Mr. Ward to payoff of Don't Vote Mr. Ward: 12, Mrs. Ward: -24 Mr. Ward: 0, Mrs. Ward: 0 units of utility and Mrs. Ward receives a payoff of and for Mrs. Ward to units of utility. Under this outcome, Mr. Ward receives a
Economics Present an example of a prisoner's dilemma in your own life. Describe the “cooperative" action for each player that involves trusting the other in some sense. Explain why mutual cooperation will lead to an outcome that is preferred to mutual defection. Describe why there is an incentive for each to defect, or not cooperate, or not be trustworthy. Discuss what might be done to promote mutual cooperation, or what is done.