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