The dominant strategy equilibrium in the prisoner's dilemma is:

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Question restatement: What is the dominant strategy equilibrium in the prisoner's dilemma?
Option 1: 'related to the personality of the players.' This option attributes the outcome to personal traits, which is not how game theory defines a dominant strategy equilibrium; such equilibria are about payoffs and best responses, not inherent personality.
Option 2: 'one player denies while the other confesses.' This describes an asymmetric outcome, but a dominant strategy equilibrium requires the same best response regardless of the other player's action. In the classic PD, this asymmetric outcome is not the stable, strategy-dominant result.
Option 3: 'confession by both players.' In the prisoner's dilemma, confessing (or defecting) is the dominant strategy for each player: it yields the highest payoff given whatever the other player does, and when both players adopt it, you reach the dominant strategy equilibrium characterized by mutual confession.
Option 4: 'denial by both players.' This would be the cooperative or mutual-denial outcome, but it is not supported by the payoff structure of the PD, where defecting confers a higher payoff against any of the other player's possible actions, making mutual denial non-dominant.
Additional nuance: A dominant strategy is one that is best for a player no matter what the other player does. In the PD, each player's best response is to confess/defect whether the other cooperates or defects, which leads to the stable, dominant strategy outcome of both confessing.
Therefore, the option that correctly identifies the dominant strategy equilibrium is 'confession by both players.'

ECON 103 Summer 2025 Quiz 8.2

The dominant strategy equilibrium in the prisoner's dilemma is:

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