Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 11, Problem 11QP
To determine
Explain the prisoner’s dilemma situation.
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Give two examples of a prisoner's dilemma that involves more than two players
Explain the Prisoner’s Dilemma. Give some examples.
Explain what a prisoner’s dilemma is and relate your explanation to the situation that the members of an oligopoly may face.
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- Does each individual in a prisoner’s dilemma benefit more from cooperation or from pursuing selfinterest? Explain brieflyarrow_forwardWhile game theory predicts non-cooperative behavior for a one-shot Prisoner's dilemma. By repeating the game, say 20 rounds, it becomes possible to adopt more complex strategies that allow cooperative play as a Nash Equilibrium in at least some rounds of the game. True Falsearrow_forwardWhich 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.arrow_forward
- Evaluate this statement: “The mutually preferred outcome in the prisoner’s dilemma is a Nash Equilibrium.”arrow_forwardIn business, sports, politics, and many other fields there are probably countless situations akin to the prisoner's dilemma where players acting in their own self-interest do not produce an ideal outcome. Likewise, some player dynamics also illustrate other game theory concepts like a game of chicken, credible threats/commitments, and other similar concepts. Use at least one article from The Wall Street Journal to discuss a strategic situation between players that resembled or used any of the concepts above. What could have any of the players done differently to achieve a better outcome?arrow_forwardWhat is a tit for tat strategy? Why might it be a rational strategy in and infinitely repeated prisoner’s dilemma?arrow_forward
- Explain the so-called prisoner's dilemma problem associated with enforcement of anticorruption legislation related to the international transactions (e.g. OECD anti- bribery convention).arrow_forwardWhy is a cooperative outcome more likely in an often repeated prisoners’ dilemma?arrow_forwardWhich of the following is true of a prisoneros dilemma game? It does not have an equilibrium. It has a dominant-strategy equilibrium. It does not have a Nash equilibrium. It ensures better payoffs to the players compared to other games.arrow_forward
- 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.arrow_forwardGive two examples other than oligopoly that show how the prisoners' dilemma helps to explain behavior.arrow_forwardCome up with a diagram (i.e. using a two-player decision matrix such as the Prisoner’s Dilemma) for an original game theory/prisoner's dilemma scenario (either in business, politics, or your own personal life), and explain what would be the most likely outcome of the scenario you have chosen.arrow_forward
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