A.The “dilemma” in the Prisoner\'s Dilemma is that: the player with first-mover

Question

A.The “dilemma” in the Prisoner's Dilemma is that:

the player with first-mover advantage always gets the better outcome.

both players would be better off by not cooperating, but cooperating is a dominant strategy.

one of the players cannot get the best outcome.

both players would be better off by cooperating, but not cooperating is a dominant strategy.

B.Which game does NOT describe a Prisoner's Dilemma outcome?

cartel members attempting to increase profits by cheating on their production quotas

rival department stores agreeing to accept each other's coupons and advertised specials

a game of chicken in which one player backs down while the other player does not

competing electronics stores attempting to undercut each other's prices

Explanation / Answer

a) Both the players would be better off by cooperating, but not cooperating is a dominant strategy.

In a prisoners dilemma, if the players cooperate they will be better off with the playoffs but that is never the dominant strategy in the game. The dominant strategy gives the better outcome but only if one player follows it. If both the players follow the dominant strategy the outcome will be poor.

b) "A game of Chicken in which one player backs down while the other player doesn't"

The above example is not a prisoners dilemma. In a prisoners dilemma, the players either cooperate or back out both at the same time. Here, one player is backing out and other is following the dominant strategy.   

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