Asked by Trevor Dandrade on Jul 09, 2024
Verified
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
A) Start by cooperating
B) Start the game by punishing the rivals
C) Start the game by cheating on the rivals
D) All of the above
Prisoner's Dilemma
A situation in game theory where two individuals acting in their own self-interest do not produce the optimal outcome, showing the conflict between personal and collective rationality.
Nash Equilibrium
An idea in game theory stating that no participant can gain an advantage by altering their strategy if all other participants maintain their current strategies.
Cooperating
The act of working together towards a common goal or purpose, often implying mutual assistance and collaboration.
- Comprehend the impact of recurrent interactions on strategy and equilibrium.
Verified Answer
TT
TeeAnd TrellJul 10, 2024
Final Answer :
A
Explanation :
Starting by cooperating is the best way to get out of a repeated Prisoner's Dilemma Nash Equilibrium. It signals to the rival player that the player is willing to cooperate and build trust, potentially leading to mutual cooperation in the future rounds. Starting with punishment or cheating can further entrench the players in the Nash Equilibrium of mutual defection.
Learning Objectives
- Comprehend the impact of recurrent interactions on strategy and equilibrium.