📚 Learning Guide
Game Theory
easy

In a scenario resembling the Prisoner's Dilemma, why might two rational players choose not to cooperate, despite mutual benefits?

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Choose the Best Answer

A

They fear the other will betray them, leading to a worse outcome.

B

Cooperation is always guaranteed to yield better results.

C

They believe the game will never end, encouraging a long-term strategy.

D

They have no knowledge of the possible outcomes.

Understanding the Answer

Let's break down why this is correct

Answer

In a situation like the Prisoner's Dilemma, two rational players might choose not to cooperate because they are worried about what the other person will do. Each player thinks, "If I trust the other person and they betray me, I will end up worse off. " This fear of betrayal leads them to choose the option that seems safer, which is to betray the other person instead of cooperating. For example, imagine two friends who can either share a prize or keep it all for themselves. If they both keep it, they miss out on a bigger reward, but if one shares while the other keeps it, the one who kept everything wins more, making them hesitant to trust each other.

Detailed Explanation

Players might not trust each other. Other options are incorrect because This idea suggests that working together always leads to better results; This option assumes the game goes on forever, which isn't always true.

Key Concepts

Game Theory
Strategic Decision-Making
Payoff Matrix
Topic

Game Theory

Difficulty

easy level question

Cognitive Level

understand

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