Question

In the prisoners' dilemma game, self-interest leads

a. each prisoner to confess.
b. to a breakdown of any agreement that the prisoners might have made before being questioned.
c. to an outcome that is not particularly good for either prisoner.
d. all of the above are correct.

Answer 1

The correct answer is option d.

Step-by-step explanation:

Prisoner's dilemma game is a game of strategy where the individual rational decisions lead to collective irrationality. When the individual players act in their self-interest they are unable to produce an optimal outcome.

For instance, if two prisoners are captured and both of them confess that the other person has committed the crime to save themselves. Both of them will be convicted. This outcome will not be consistent with any prior agreement and will also cause a loss to both.

So individual rational decision to save oneself will lead to a collective loss of being convicted.