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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. |
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Learn more about the Prisoner's Dilemma More on individual decision making: Anchoring Bias, Bayesian Theory, Black Swan Theory, Bounded Rationality, Cognitive Bias, more... You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA. MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration. We like to keep things short, and provide links to learn more about your subject.
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