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Prisoners'dilemma of incomplete information Prisoner 1 is always rational (selfish). Prisoner 2 can be rational(selfish)or altruistic,depending on whether he is happy or not. ■ If he is altruistic then he prefers to mum and he thinks that “confess”is equivalent to additional“four months in jail". ■ Prisoner 1 can not know exactly whether prisoner 2 is rational or altruistic,but he believes that prisoner 2 is rational with probability 0.8,and altruistic with probability 0.2. Payoffs if prisoner 2 is Prisoner 2 altruistic Mum Confess Mum -1,=1 -9, -4 Prisoner 1 Confess 0,-9 -6,-107 Prisoners’ dilemma of incomplete information  Prisoner 1 is always rational (selfish).  Prisoner 2 can be rational (selfish) or altruistic, depending on whether he is happy or not.  If he is altruistic then he prefers to mum and he thinks that “confess” is equivalent to additional “four months in jail”.  Prisoner 1 can not know exactly whether prisoner 2 is rational or altruistic, but he believes that prisoner 2 is rational with probability 0.8, and altruistic with probability 0.2. 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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