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English
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2 / 506 |
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When the game is infinitely repeated, cooperation may be a subgame perfect Nash equilibrium although both players defecting always remains an equilibrium and there are many other equilibrium outcomes.
In casual usage, the label "prisoner's dilemma" may be applied to situations not strictly matching the formal criteria of the classic or iterative games; for instance, those in which two entities could gain important benefits from cooperating or suffer from the failure to do so, but find it merely difficult or expensive, not necessarily impossible, to coordinate their activities to achieve cooperation...
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In its classical form, the prisoner's dilemma (PD) is presented as follows:
Two suspects are arrested by the police. The police have insufficient evidence for a conviction, and, having separated both prisoners, visit each of them to offer the same deal. If one testifies (defects) for the prosecution against the other and the other remains silent, the betrayer goes free and the silent accomplice receives the full 10-year sentence...
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