Asked by Syed Muhammad Talha on Sep 24, 2024
Verified
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
A) Do not be forgiving
B) Be forgiving
C) Punish the competitors severely forever
D) All of the above
Prisoner's Dilemma
A paradox in decision-analysis in which two individuals acting in their own self-interest do not produce the optimal outcome.
Nash Equilibrium
A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, leading to a stable outcome.
- Gain insight into how ongoing interactions influence strategy and equilibrium.
Verified Answer
GB
Garry Bumboolaabout 20 hours ago
Final Answer :
B
Explanation :
Being forgiving can break the cycle of retaliation and lead to cooperation in the long run. Punishing the competitors may lead to further retaliation and perpetuate the cycle of non-cooperation. Not being forgiving will also perpetuate the cycle of non-cooperation.
Learning Objectives
- Gain insight into how ongoing interactions influence strategy and equilibrium.