The Prisoners’ Dilemma is so named because

Question

BlackTom AI · Accepted Answer

Here is a step-by-step analysis of each option related to why the Prisoners’ Dilemma is named as such.
Option 1: 'the Nash equilibrium is one of the worst outcomes for the players.' This aligns with the standard explanation of the Prisoners’ Dilemma: when each player defects, they reach a Nash equilibrium where neither has an incentive to unilaterally change their strategy, yet this outcome is worse for both than if they had cooperated. The name emphasizes that rational self-interest leads to a collectively poor result.
Option 2: 'the game has no Nash equilibrium.' This is incorrect. The Prisoners’ Dilemma does have a Nash equilibrium, namely both players defecting. The statement falsely claims nonexistence of such an equilibrium.
Option 3: 'the game is zero-sum.' This is incorrect. In a zero-sum game, one player's gain exactly equals the other’s loss. In the Prisoners’ Dilemma, both players share outcomes on the same payoff matrix; there is a potential mutual gain or loss relative to cooperation, so it is not strictly zero-sum.
Option 4: 'players end up earning a lighter sentence than the prosecutor would like.' This misstates the setup and purpose of the game. The name does not hinge on how sentences align with the prosecutor’s preferences but on the conflict between individual rationality and collective benefit, which is captured by the Nash equilibrium being suboptimal for both.

ECON1001 (ND) Quiz 4

The Prisoners’ Dilemma is so named because

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