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What is the Nash Equilibrium in the prisoner's dilemma in classical game theory?
Wiki User
∙ 14y ago
The Nash Equilibrium is the outcome if every player in a game plays according to self interest, but by doing so, forgo a greater benefit that would have resulted for both players if each had not played according to the apparent self-interested choice. The classic example is the prisoner's dilemma: a policeman takes two criminals who worked together on a crime and places them into separate interrogation rooms. He has both criminals on a lesser crime, but he wants them to confess to the greater crime, so he offers each 1. freedom if they confess and their partner does not, or 2. a lesser sentence if both confess. So, making up numbers on the spot, let's say that if both confess, both get 3 years in jail if one confesses, the other gets life in jail, and if neither confess, they both get one year in jail. Now, initially, it would seem obvious that neither would confess. But, if you were one of the criminals, you most certainly would confess, and here's why: If the other criminal (player) (who you have not talked to) confesses, you would get 3 years if you confessed and life if you didn't, so confessing makes sense. And if the other guy didn't confess, you would be free if you confessed, and get one year if you didn't. So either way, confessing makes sense, as it would for the other guy. Therefore, the Nash equilibrium is established at 3 years apiece.
Wiki User
∙ 14y ago
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