Question

Would you rather be put in a maximum security federal prison with the hardest of the hardened criminals for one year or be put in a relatively relaxed prison where Wall Street types are held for ten years?

A) Maximum security federal prison for one year
B) Relatively relaxed prison with Wall Street types for ten years
C) No preference, both options are equally acceptable
D) Neither option is acceptable

Answer 1

In this scenario, Jane and Bill are apprehended for a bank robbery and face the decision of whether to confess or stay silent. Their sentences depend on each other's choices and their level of trust. The outcome varies based on their decisions.

Step-by-step explanation:

In this scenario, Jane and Bill, who are apprehended for a bank robbery, are faced with deciding whether to confess and turn the other person in to receive a lighter sentence. The possible outcomes are as follows:

• If both confess, they will each be sentenced to 30 years.
• If neither confesses, they will each receive a 20-year sentence.
• If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years.

If Jane trusts Bill to stay silent, she should confess to receive a lighter sentence of 15 years. However, if Jane thinks that Bill will confess, she should stay silent to avoid a longer sentence. Jane does not have a dominant strategy as her decision depends on her trust in Bill's actions. Similarly, Bill does not have a dominant strategy as his decision also depends on his assessment of Jane's actions.