Prisoner's Dilemma |
Definition: the Prisoner's Dilemma is a zero-sum game example of a Game Theory situation: 2 criminals are arrested under the suspicion of having committed a crime together. However, the police does not have sufficient proof to have them convicted. The 2 prisoners are isolated from each other and the police offers each of them a deal: the person that offers evidence against the other one will be freed. If none of them accepts the offer, both of them will get only a small punishment because of lack of proof. If one person betrays the other, he will gain more, since he is freed. But the other will receive full punishment. |
More on prisoner's dilemmas. More on individual decision making: Anchoring Bias, Bayesian Theory, Black Swan Theory, Bounded Rationality, Cognitive Bias, more... |
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