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| − | The Prisoner's Dilemma is a classic problem in [[Game Theory]]. It seems paradoxical, in that the [[Nash equilibrium]] is not the best solution for both players. | + | The '''Prisoner's Dilemma''' is a classic problem in [[Game Theory]]. It has the paradoxial outcome that members of a group will consciously steer towards a sub-optimal outcome in certain scenarios. |
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| − | The game is usually phrased in terms of two suspects, both of whom have been arrested, and offered a bargain. If neither of them confess, they will both serve 6 months in prison for a minor crime. If one of them confesses, this provides evidence of a major crime. The confessor is rewarded by being let off, and the other suspect serves ten years in prison. If both confess, they both serve two years.
| + | <div style=float:right; padding: 20px"> |
| | + | {|style="border-collapse:collapse" |
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| | + | !colspan=2 style="padding:10px"|''B'' |
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| | + | |style="border-style:solid; border-width:1px; padding:10px"|don't confess |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|confess |
| | + | |- |
| | + | !rowspan=2 style="padding:10px"|''A'' |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|don't confess |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|A: 6 months |
| | + | B: 6 months |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|A: 10 years |
| | + | B: free |
| | + | |- |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|confess |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|A: free |
| | + | B: 10 years |
| | + | |style="border-style:solid; border-width:1px; padding:10px"|A: 2 years |
| | + | B: 2 years |
| | + | |} |
| | + | </div> |
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| − | If each prisoner only cares about their own jail term, then the best choice for each prisoner would be to confess. Confession is what is known as a [[Strictly Dominant Strategy]], as whatever one suspect chooses to do, Confess is the best choice. If Prisoner B confesses, then Prisoner A's best response is to confess, to avoid the ten year prison term. If Prisoner B does not confess, then Prisoner A's best response is still to confess, to get the reward of not going to prison. | + | The game is usually phrased in terms of two suspects, both of whom have been arrested, and offered a bargain. If both stay silent, they will both serve 6 months in prison for a minor crime. If one of them confesses, this provides evidence of a major crime. The confessor is rewarded by being let off, and the other suspect will serve ten years in prison. If both confess, they will both serve two years. |
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| − | Thus, the situation leads to both prisoners confessing, and serving a two year prison term. However, this is worse for both prisoners than if they both kept quiet, and served only six months. The prisoners would benefit if they could co-operate, but in the usual phrasing of the problem, neither player knows what the other will do. The situation with both prisoners confessing is a Nash equilibrium, and is in fact the only such equilibrium that exists in the problem.
| + | It is obvious that the best outcome (the [[Pareto optimum]]) for the group would be if both prisoners cooperated and stayed silent: Six months for both prisoners. However, in the "default" setting of the Prisoner's dilemma, we assume that the prisoners are not given the chance to work out such a strategy and that they are interested in their own wellbeing first. |
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| | + | Prisoner A will now analyze his options: |
| | + | *If Prisoner B chooses "don't confess", Prisoner A's best choice will be "confess": A gets out of prison immediately. |
| | + | *If Prisoner B chooses "confess", Prisoner A's best choice will be "confess", too: 2 years is better than 10 years. |
| | + | (The case for Prisoner B is symmetric.) |
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| | + | Using this reasoning, both prisoners will choose "confess", even though it is not best result. |
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| | + | The strategy "confess" is a strictly [[dominant strategy]]: The choice of the Prisoner B does not change the way Prisoner A will act. The "confess/confess" scenario is also the only [[Nash equilibrium]] in this problem. |
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| | ==Iterated Prisoner's Dilemma== | | ==Iterated Prisoner's Dilemma== |