Asked by Kunwar Singh on May 10, 2024

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Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?

A) ​Be envious
B) Try to decrease your competitor's pie while increasing your own
C) Do not be envious-focus on your slice of the profit pie
D) ​All of the above

Prisoner's Dilemma

A paradox in decision analysis in which two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players' strategies remain unchanged.

Competitor's Pie

A metaphorical representation of the total market share or demand available to all competitors within a market.

  • Analyze strategic interactions in repeated and simultaneous-move games.
  • Recognize the role and strategies of tit-for-tat in repeated games.
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TZ
Thalia ZunigaMay 14, 2024
Final Answer :
C
Explanation :
The best choice is to not be envious and to focus on your own slice of the profit pie. This means cooperating with your competitor and striving for a mutually beneficial outcome. By doing so, you may be able to build trust and establish a new equilibrium that is more favorable for both parties. Trying to decrease your competitor's pie while increasing your own (option B) is not a sustainable solution as it could lead to retaliation and an endless cycle of tit-for-tat behavior. Being envious (option A) is also not a productive approach as it can lead to short-term gains but can ultimately harm both parties in the long run.