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Prisoner's Dilemma

Summary

A game theory scenario where two individuals would be better off cooperating, but each has an incentive to defect — leading to a worse outcome for both when both defect.

The Payoff Matrix

B Cooperates B Defects
A Cooperates Both get 3 points A: 0, B: 5
A Defects A: 5, B: 0 Both get 1 point

Rational choice (one-off): Always defect (weakly dominant strategy) Rational choice (repeated): Cooperate first, then copy opponent (Tit for Tat)

Real-World Examples

  • Roommate dish duty
  • Price wars between businesses
  • Nuclear arms races
  • Climate change cooperation

See Also