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The prisoner’s dilemma is a subtle a balance between social settings, politics and business. These are three important parameters that affect the economy of the nation on a whole. There are three distinct probabilities and hence the decision making is tedious and important. The decisions are made aptly with recourse to theories. Evaluation is based on theories and formulae.
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Prisoner’s dilemma comprises mathematics, economics and aspects of the exquisite game theory. This is quite commonplace for any oligopolistic firm and illustrates how individuals may reach a non-optimal situation or a catch22 owing to lack of trust and cooperation. The topic is an interesting one and addresses a plethora of problems that need to be sorted out with finesse.
The situation present in this game comprises two players imprisoned for some alleged crime. Invariably, the prisoners either refuse or agree to testify to one another. In such a scenario, there are four distinct combinations that crop up – a combination of ‘testify’ and ‘does not testify’! When one testifies, the player gets reward, whereas the other person gets punished.
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