Prisoner's dilemma(pd) of two criminals Cooperator; obey the alliance with another criminal to deny the accusation Defector defect the alliance and admit the accusation C D Not Guilty Guilty C(den)(2,2)(-5,-1) D(a)(,5(3,3 2 Years 5 Years If your opponent plays C: you'd better play D If your opponent plays D: you' d better play D aeaa 5 Years 1 Y 3 Years But Copyright 2005-Investopedia, com CC is better than DD T>R>P>S and R>1/2(S+T) Dilemma: Despite mutual cooperation being the best, individual tends to DD.11 Prisoner’s dilemma (PD) of two criminals C D C(deny) (-2,-2) (-5,-1) D(admit ) (-1,-5) (-3,-3) Cooperator: obey the alliance with another criminal to deny the accusation Defector: defect the alliance and admit the accusation If your opponent plays C: you’d better play D. If your opponent plays D: you’d better play D. But, CC is better than DD Dilemma: Despite mutual cooperation being the best, individual tends to DD. T>R>P>S and R>1/2(S+T) T R P S