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Prisoners'dilemma of incomplete information cont'd Given prisoner 1's belief on prisoner 2,what strategy should prison 1 choose? What strategy should prisoner 2 choose if he is rational or altruistic? Payoffs if prisoner 2 is Prisoner 2 rational Mum Confess Mum -1,-1 -9, 0 Prisoner 1 Confess 0,-9 -6,-6 Payoffs if prisoner 2 is Prisoner 2 altruistic Mum Confess Mum -1,-1 -9,-4 Prisoner 1 Confess 0,-9 -6,-10 88 Prisoners’ dilemma of incomplete information cont’d  Given prisoner 1’s belief on prisoner 2, what strategy should prison 1 choose?  What strategy should prisoner 2 choose if he is rational or altruistic? Payoffs if prisoner 2 is rational Prisoner 2 Mum Confess Prisoner 1 Mum -1 , -1 -9 , 0 Confess 0 , -9 -6 , -6 Payoffs if prisoner 2 is altruistic Prisoner 2 Mum Confess Prisoner 1 Mum -1 , -1 -9 , -4 Confess 0 , -9 -6 , -10
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