Ken and Pat have been arrested by the police during a robbery at a computer stor

Question

Ken and Pat have been arrested by the police during a robbery at a computer store. The sentence for robbery is 5 years. During questioning, the police begin to suspect that Ken and Pat are also responsible for an arson attack on the local bingo hall. If both confess to the arson, each will receive 10 years in jail. If only one confesses, he will receive 4 years and the one who does not confess will receive 18 years. In this prisoners' dilemma game, each player has | possible strategies and there are | | possible outcomes. The Nash equilibrium of this game is O A. both Pat and Ken deny O B. Pat confesses and Ken denies O C. both Pat and Ken confess O D. Ken denies and Pat confesses two four

Explanation / Answer

Solution: In this prisoners' dilemma game, each player has two possible strategies and there are three possible outcomes.

The Nash equilibrium of this game is that both Pat and Ken confesses

Explanation:

If only one confesses, he will receive 4 years and the one who does not confess will receive 18 years; If both confess to the arson, each will receive 10 years in jail. Thus there can be two strategies where either one confess or both confess; Three outcomes - 4 years, 18 years or 10 years. The Nash equilibrium of this game will be 10 years jail.

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