Prisoner's Dilemma
Game TheoryDecision MakingStrategy
The Prisoner's Dilemma illustrates how two individuals acting in their own self-interest can lead to suboptimal outcomes for both.
Introduction
The Prisoner's Dilemma illustrates how two individuals acting in their own self-interest can lead to suboptimal outcomes for both.
Core Concepts
- Individual Rationality: Prioritizing personal benefit.
- Collective Rationality: Cooperation yields better outcomes.
- Trust and Strategy: Decisions hinge on predicting the other's actions.
Applications
- Negotiation strategies to encourage collaboration.
- Economics for understanding competition dynamics.
Related Resources
- Book: "The Evolution of Cooperation" by Robert Axelrod.
- Tools: Simulation models for strategic interactions.