Premium Essay

Prisoner's Dilemna

In: Business and Management

Submitted By maryann
Words 902
Pages 4
The Prisoners' Dilemma
Cooperation is usually analysed in game theory by means of a non-zero-sum game called the "Prisoner's Dilemma" (Axelrod, 1984). The two players in the game can choose between two moves, either "cooperate" or "defect". The idea is that each player gains when both cooperate, but if only one of them cooperates, the other one, who defects, will gain more. If both defect, both lose (or gain very little) but not as much as the "cheated" cooperator whose cooperation is not returned. The whole game situation and its different outcomes can be summarized by table 1, where hypothetical "points" are given as an example of how the differences in result might be quantified.
Action of A\Action of B Cooperate Defect
Cooperate Fairly good [+ 5] Bad [ - 10]
Defect Good [+ 10] Mediocre [0]
Table 1: outcomes for actor A (in words, and in hypothetical "points") depending on the combination of A's action and B's action, in the "prisoner's dilemma" game situation. A similar scheme applies to the outcomes for B.
The game got its name from the following hypothetical situation: imagine two criminals arrested under the suspicion of having committed a crime together. However, the police does not have sufficient proof in order to have them convicted. The two prisoners are isolated from each other, and the police visit each of them and offer a deal: the one who offers evidence against the other one will be freed. If none of them accepts the offer, they are in fact cooperating against the police, and both of them will get only a small punishment because of lack of proof. They both gain. However, if one of them betrays the other one, by confessing to the police, the defector will gain more, since he is freed; the one who remained silent, on the other hand, will receive the full punishment, since he did not help the police, and there is sufficient proof. If both…...

Similar Documents

Premium Essay

Intel Dilemna

...Intel's Dilemma Ever since it embarked on the x86 journey, Intel has led the innovation curve in microprocessors. this has, among other things, forced Intel to kill its own profitable products, to protect its territory. The 486 was introduced in 1992. Now in 1996, we are on 3 generations of chips ahead and Intel has stopped making 486 chips, an era ago. This gives very little time to Intel to recover the product development costs before it has to commit infanticide on its successful products. There are 3 things that Intel has done worldwide to solve this problem. The first, is the Intel Inside campaign - which must rank as one of the greatest advertising innovations - which has drawn attention to the Intel brand name. The second, is to ensure rapid global rollouts of all its products. The third, is to build a brand stronger than the "X86" nomenclature - by opting for the name Pentium instead of the dry 586 - the natural successor. Pentium was launched with fanfare, and a hiccup not withstanding, succeeded as expected. The added bonus was the brand name which brought the product out of numerical nomenclature and made it a high-recall brand. It was, however, the success of Pentium that put Intel in a quandary. When the 5th generation processors time came to yield place to the new, 6th generation chip, Intel was loathe to see all the money poured into Pentium become history with the brand. It was this thinking that led to the 6th generation chip being named P6 instead of 686......

Words: 3980 - Pages: 16

Free Essay

Ethical Dilemna

...Analysis of an Ethical Conflict in Practice: Battlefield Nursing by Jonathan Wells A PAPER Submitted to the faculty of the Excelsior College, in partial fulfillment of the requirements for the degree of Master of Science in Nursing. ALBANY, NY 2012 Abstract In the legal world that we live in, we are constantly at risk of facing ethical dilemmas that may arise from conflicting legal obligations. If caring is important in nursing, then nurses will have to make a concerted effort to define a specific duty of care in clinical, administrative, educational, research and military environments. In order to fully preserve tradition and concept of caring within the profession of nursing, we must make every effort to understand its ethical implications and provide the guidance needed for navigating dilemmas that regularly arise in relation to it. Analysis of an Ethical Conflict in Practice: Battlefield Nursing This paper will provide a brief overview of a possible ethical dilemma that may arise within the field or nursing during war time. It will then move on to explain the multiple ethical issues within the overall situation, the decision making model that the author has chosen to apply to the dilemma, and the stakeholders with their possible interest in the decision making process. With this information defined, the paper will move on to state the author’s derived solution to the situation, as well as a moral justification for the plan of action to be......

Words: 4229 - Pages: 17

Premium Essay

Workplace Ethical Dilemna

...Workplace Ethical Dilemma BSHS/332 March 11, 2013 Dr. Rina Wallace Workplace Ethical Dilemma Workplace dilemmas and issues occur often and ranges from a simple disagreement to complicated issues. Understanding the diversity of issues may present dilemmas for the organization; however, identifying, and correcting these problems will help prevent the organization from suffering loss. Employees will make decisions each day within a business, from the top level-managers to the lower-level managers, and even with lower-level employees. No matter the position, each employee has exposure with facing the risk of an ethical dilemma at some time. Some ethical decisions are more confusing than others and many cannot comprehend the complication of the issues. Recognizing how to resolve ethical issues in the workplace can enhance the effects of the decision-making process. In addition, it will help to maintain the employee and the business in good standing in the public’s sight and the law. Ethics involve a persons’ appreciation of worthy principles, ideals, goals, and values (Freeman, 2000). Workplace Dilemma As a mail carrier for the United States Postal Service (USPS) for over 30 years I have seen some unethical dilemmas. Many employees have lost jobs resulting from theft, falsifying documents, cheating, abuse, and sexual harassment. Recently, a particular incident took place between a male and female employee. Each regular carrier has a particular route each......

Words: 1238 - Pages: 5

Free Essay

Prisoner's Dilemma

...factoring in the opportunity costs, it allows them to make the best decision to better allocate their resources of all other competitive alternatives. If they don’t, they could be choosing options that could prevent the firm from making more profit. Managers often focus on accounting profit method because they are easy to obtain and are more commonly used to present the company performance to the investors. Question #4 Is the prisoners’ dilemma always a Nash equilibrium? Is Nash equilibrium always a prisoners’ dilemma? Explain. The Nash equilibrium states that NO participant can gain by a change of strategy as long as all the other participants remain unchanged. So the prisoner’s dilemma is always a Nash equilibrium. On the other hand, Nash equilibrium is not always a prisoner’s dilemma because the Nash equilibrium looks at “collective interest” involving all parties. Chapter 12 Question #2 Comment on the following: All of wisdom contained in the five-forces framework is reflected in the economic identity: Profit = (Price – Average Cost) x Quantity In one way or another, everything on the right side of the equation affects profit. Buyer Power can affect Quantity and Price. If the buyer demand is high and there aren’t any subsidies, the price and quantity can be high which results in more profit. If the buyer demand is low or there are many sellers, the price has to be lowered and the business owner may lose customers to its competitors......

Words: 930 - Pages: 4

Premium Essay

Describe the Prisoner's Dilemma?

...Prisoner’s Dilema is a game with non-zero sum in game theory. The simplest form of the game have two gamer (called prisoner), each prisoner always wants to get the benefit for himself, no matter what the other benefit is. The result of the game is not optimal. If two prisoners cooperate with each other, the result is the best. But each prisoner naturally has a motivation to escape the prison. So that I is the reason why they call “dilemma”. Prisoner’ Dilemma focuses on researching the instant decision making when the prisoners have no time or do not expect to the cooperation or association in the future. The question is that two prisoners think rationally; this means that each prisoner chooses the most benefit option for himself no matter what the other want to cooperate or not, so they always choose the uncooperative option and this makes them have nothing. If they choose the cooperative option, both of them have benefit. pp.229 We assume the numerical result of China and Mexico when each nation produces or does not produce steel components in the table below: Japan Mexico Producing Not Producing Producing +10 +10 -10 +20 Not Producing +20 -10 -5 -5 From the table we can see that If Mexico chooses producing steel components option and Japan does not produce steel components, Japan (+20) will get more benefit than......

Words: 349 - Pages: 2

Premium Essay

Organization Dilemna

...Example of Emotion Labor: Physicians * Physicians probably have some of the hardest news to hide during their employment. They have to deliver horrible news to unlucky individuals that are seen by them. While after a while this becomes a practiced art by the physician, it does not become any less of a burden on their daily lives. It can affect the physician daily, and become a conscience burden on their lives. Example of Stress and Burnout: Health Care Professions * This occupation sees more of the stress and burnout than pretty much any other job. With the emotional toll of not saving individuals lives, patient dissatisfaction, and long driving hours, it can easily been seen why. With all of this weighing on their everyday minds, the need to respond and act quickly also starts to dissipate. The average shift for someone in this occupation is 12 hours, stress and burnout is seen quite heavily. While other shifts are 8 hour rotation, majority of them are seen needing to cross shift, and this causes instances of chronic fatigue, anxiety, and emotional exhaustion. Example of Work-Life conflict * This is a major issue in just about all occupations. The job is always on the mind, what could you have done to do better weighs the individual down, and why this have to happen on my shift, is often questions that go through everyone’s minds. I always lived by the saying “leave work at the door”, and found it is not even close to an easy thing to do. Something’s you just...

Words: 755 - Pages: 4

Free Essay

Dilemna in Leadership

...THE UNIVERSITY OF MANCHESTER MANCHESTER BUSSINESS SCHOOL | GLOBAL EVENTS AND LEADERSHIP | PART 1  US/Iran nuclear talks offer rejected The Iran supreme Leader has dismissed the proposal to have a one to one talk with the US over his country's nuclear program. Ayatollah Khamenei said in a speech posted online that the US was proposing talks while "Pointing a gun at Iran". “Iran’s president has said he is ready for directs talks with the US if the West stops pressuring his country. His comments directly contradict the words of the Supreme leader of Iran who rejected the US proposal of direct negotiations. Mahmoud Ahmadinejad made his statement at a rally to mark the anniversary of the 1979 Islamic revolution. “You pull away the gun from the face of the Iranian nation, I myself will enter the talks with you,” he said.”1 “ Iran's supreme leader, Ayatollah Ali Khamenei, rejected any idea of bilateral talks with the United States on Thursday in a speech in which he scoffed at Iranian officials who might consider such negotiations.”2 Iran which has suffered sanctions from the international community has been arguing that her nuclear programs are for peaceful reasons mainly for research and electricity power generation.However,Iran's critics argue that the country is developing weapons of mass destruction(WMD) despite the country being a signatory to various treaties that are against such developments.These treaties includes the Biological Weapon Convention3,the......

Words: 1483 - Pages: 6

Premium Essay

Prisoner's Dilema: Atomic Weapons what is known as the Prisoner’s Dilemma. Figure 1: | Player 2 - Cooperate | Player 2 - Defect | Player 1 - Cooperate | -1, -1 | -10, 0 | Player 1 - Defect | 0, -10 | -5, -5 | The Prisoner’s Dilemma is a game involving two players that can be best explained by using a diagram as shown in figure one. The “traditional” story for the Prisoner’s Dilemma is that each player is being sent to jail for drug use, however; the police know each player is actually a big time drug dealer. The police lack the evidence to convict the players, so they present them with a choice: either testify against the other player and go free or keep silent and go to jail for a year. The player who is testified against is given ten years in prison. In addition, if both players choose to testify, they both go to jail for five years. Lastly, the players may not communicate with one another. This is where the figure becomes helpful in sorting everything out. The chart displays the options each player can choose. Each player can either choose to cooperate, which means they choose to remain silent, or defect, which means they choose to testify. Few situations can perfectly align with the model of the Prisoner’s Dilemma. For instance, the players may somehow be able to communicate with one another, they may not make decisions based on rational reasoning, or they might introduce another variation. The situation faced by the Soviets and the US was very similar to Prisoner’s Dilemma. They could......

Words: 2133 - Pages: 9

Premium Essay

Prisoner's Dilemma Game

...Your Name 07/07/14 –Economics Unit 3 Prisoner’s Dilemma/ Part 1 1. What is a prisoner’s dilemma game? The Prisoner’s Dilemma is the best-known game of strategy in Social Science. It help us understand what governs the balance between cooperation and competition in business. 2. What is a dominant strategy? If a strictly dominant strategy exists for one player in a game, that player will play that strategy in each of the game's Nash equilibrium. If both players have a strictly dominant strategy, the game has only one unique Nash equilibrium. 3. What is a cartel? A cartel is a collection of businesses or countries that act together as a single producer and agree to influence prices for certain goods and services by controlling production and marketing. 4. What is Nash equilibrium? (In economics and game theory) a stable state of a system involving the interaction of different participants, in which no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged Part 2 – Standard Example | Clyde confesses | Clyde is silent | Bonnie confesses | Both get 10 years. | Bonnie-6 months/Clyde gets 20 years. | Bonnie is silent | Clyde gets 6 months, Bonnie is charged 20 years. | Both get a year. | 1. What is the equilibrium in this game? The equilibrium in this game would be the participation on an agreement between both of the participants, but due to a case of dishonesty, one participant......

Words: 517 - Pages: 3

Premium Essay

Prisoners Dilemna

...was developed by RAND Corporation scientists Merrill Flood and Melvin Dresher and was formalized by Albert W. Tucker, a Princeton mathematician. The prisoners’ dilemma has applications to economics and business. Consider two firms, say Coca-Cola and Pepsi, selling similar products. Each must decide on a pricing strategy. They best exploit their joint market power when both charge a high price; each makes a profit of ten million dollars per month. If one sets a competitive low price, it wins a lot of customers away from the rival. Suppose its profit rises to twelve million dollars, and that of the rival falls to seven million. If both set low prices, the profit of each is nine million dollars. Here, the low-price strategy is akin to the prisoner’s confession, and the high-price akin to keeping silent. Call the former cheating, and the latter cooperation. Then cheating is each firm’s dominant strategy, but the result when both “cheat” is worse for each than that of both cooperating. Arms races between superpowers or local rival nations offer another important example of the dilemma. Both countries are better off when they cooperate and avoid an arms race. Yet the dominant strategy for each is to arm itself heavily. On a superficial level the prisoners’ dilemma appears to run counter to Adam Smith’s idea of the invisible hand. When each person in the game pursues his private interest, he does not promote the collective interest of the group. But often a group’s cooperation is......

Words: 921 - Pages: 4

Free Essay

Business Dilemnas

...Scenario A 1. What do you see as the issues raised by the facts in the scenario? Describe as many as you see. * Third-party beneficiaries meaning that employees can sue Stephen (promisor) for not keeping its promise. * Bonuses are discretionary. It is not an obligation to give all employees a 15% bonus. * Not fair to give employees who work harder than others the same bonus. * US law requires that American workers must be sought before the employer hires a foreign worker for a job, which leads Stephen to a borderline Fraud situation. 2. What do you see as the consequences of Stephen’s decision? * Stephen’s decision of decreasing his employees’ bonus may decrease their intrinsic motivation, interest and performance on the job. * Nancy may not be as qualified and trained as the other employees. Since it’s a small accounting firm, he cannot afford to loose his clients especially that the beginning of the year is a critical time for accounting firms. * She’s lacking of qualifications since she just graduated with a BBA and isn’t a Certified Public Accountant (CPA) yet. * Hiring a foreign worker will increase the firm’s expenses (visa and lawyers process). 3. What alternative courses of action did Stephen have? * Instead of decreasing his employees’ bonus, which is detrimental to their morale and productivity, to find funds for his cousin’s hire, he could have let her pay all the foreign employment expenses. *......

Words: 1424 - Pages: 6

Premium Essay

Game Theory and the Prisoner's Dilemma

...Game Theory and the Prisoner’s Dilemma Business Strategy Antoinette Monteiro Grand Canyon University DBA 815 January 13, 2016 The Definition of Game Theory The game is the object of game theory, which is an interactive situation. There are several players involved in the situation; a game with only one person is a decision problem. According to game theory, the players, their preferences, their information, the strategic actions available to them, affects the outcome. Game theory is conflict and cooperation; the agents are interdependent on the actions of others. These agents are individuals, groups, firms or a combination of these combined. Game theory provides a language to formulate, structure, analyze and understand different circumstances (Turocy and Stengel, 2001 p.4). History and Effects of Game Theory An example of game analysis is the idea of two players dominating the marketplace which was introduced by Antoine Cournot in 1838. Emile Borel, a mathematician proposed a game theory in 1921 and this research was expanded by Neumann in 1928 called the “theory of parlor games.” This theory was solidified in the publication, “The Theory of Games and Economic Behavior by Neumann and Morgenstern. This book pioneers the basic terms and problems that are still in use to this day (Turocy and Stengel, 2001, p.4). The mathematician, John Nash showed that finite games have an equilibrium point in which players choose actions which give the best outcome for......

Words: 1938 - Pages: 8

Premium Essay

Ethical Dilemnas

...I have experienced many ethical dilemmas but the most memorable occurred while I was at work during one of my previous jobs. I was operating a carnival game where the objective of the game was to knock off three blocks from a square table with a bean bag. If you succeeded in doing so then you would win a big teddy bear. There was one customer trying to win the gigantic teddy bear for his daughter. Everyone could see that the little girl really wanted the prize and you could also see how hard the father was trying to be a hero. After spending nearly one hundred dollars the father still couldn’t win the prize. His daughter was nearly in tears. I was debating whether I should violate the rules and just give him the prize or make the next game he plays easier intentionally so he could win. Other coworkers of mine had previously done the same thing and so have my managers. Sometimes keeping the customers happy is more important to give your business a better reputation. If I was in the father’s situation I would do anything to win that prize for my daughter. There are many possible consequences that result from my actions. I could have been fired from my job for giving away the prize for free even though other workers have done the same thing too. I knew the stuffed bear was worth around thirty dollars so I made sure that the father spent more than that before I gave him the bear to give to his daughter. The business is still making a profit while keeping the customers happy.......

Words: 784 - Pages: 4

Free Essay

Prisoner’s Dilemma

...Arisra Chaiprasert - 215110029 Psychology101 Section1 Dr.Sunyaratana Rajtawan 4th August 2015 Prisoner’s Dilemma Situations | ( B ) Stays silent | ( B ) Accuse | ( A ) Stays silent | I. Each serves 1 year | II. ( A ) = 3 years ( B ) = goes free | ( A ) Accuse | III. ( A ) = goes free ( B ) = 3 years | IV. Each serves 2 years | In my perspective, I would choose to accuse my peer and I think my peer should accuse me too. Therefore my chosen situation is situation 4 where each of us accuses to one another and would get imprisonment each for 2 years. Although situations 1 where both of just keep silent has least imprisonment. Whereas, if my peer betrays on me; as I keep silent I would get more punishment. Accusing other doesn’t seem to have much punishment. It either I can go free if my peer keeps silent or each of us serves same period of imprisonment if my friend is also accusing me. Keep in silent doesn’t seem work well, I should face most imprisonment period if my friend betrays on me. It is very less possible for us to keep silent as a silent person has more risky of being punished. To sum up, accusing peer gives most benefit to me. I believe that there is honor among thieves. I don’t think by peer would care me as well therefore I wouldn’t care him/her too. I wouldn’t wish to get free while my peer needs to serve punishment. Situation 4 gives me the most liking among others....

Words: 250 - Pages: 1

Premium Essay

Ethical Dilemna

...1. Ed has many ethical dilemmas starting from voilating Section 27(a)(2)of the Procurement Integrity Section of the Office of Federal Procurement Policy Act, he also is padding the expense reports, relaying information that are not suppose to be relayed. I guess due to the fact that he has not been caught makes him think what he is doing is ok and not unethical. I think the fact that he has been doing this for a long time without getting caught makes it ethical to him; he also has reasons for doing what he is doing. 2. I think for John, the ethical consideration at D&S would be figure out if Ed’s ways are the right way to be because ED is one of the best sales person in the company. He knows that ED is voilating the law and ethical standards but wondering how other way can he be one of the best sales person without going the same route as ED. Legally, he has to duty to report ED for voilating the law which prohibits agents to “offer, give or promise to give directly or indirectly to any procurement officials” . Also he needs ED to promote him professionally, since ED is up for VP position in the company. 3. The ethical conflict is that John knows what ED is doing is wrong, but does not want to be out of a job, also some people accepts ED’s method and praise ED as the best. ED has the power to make or break his career, so he is stuck between doing the right thing and moving up in the professional level. 4. If John report ED, he becomes a matyr and an enemy of......

Words: 328 - Pages: 2