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Social/Emotion

Game theory in 5 minutes

The prisoner’s dilemma is a fundamental problem in game theory that demonstrates why two people might not cooperate even if it is in both their best interests to do so

Why? Refer to the following payoff table (scale of 1-5, with 5 being the highest)

  1. Both cooperate – 3 points each
  2. One party cooperates and the other party defects
  • the one who defects = 5 points (reason: taking advantage of the one who cooperates)
  • the one who cooperates = 0 point (reason: being taken advantage of)