Imagine two prisoners held in separate cells, interrogated simultaneously, and offered deals (lighter jail sentences) for betraying their fellow criminal. They can "cooperate" (with the other prisoner) by not snitching, or "defect" by betraying the other. However, there is a catch; if both players defect, then they both serve a longer sentence than if neither said anything. Lower jail sentences are interpreted as higher payoffs (shown in the table).
The prisoner's dilemma thus has a single Nash equilibrium: both players choosing to defect i.e. State (4)
But how can
State (4) be in
- A can take gain by changing its decision i.e.
- B can take gain by changing its decision i.e.
According to me State (1) should be in
Nash Equilibrium. Am I getting it correct ...