Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Nash equilibrium
B
Prisoner's Dilemma
C
Zero-sum
D
Stag Hunt
Understanding the Answer
Let's break down why this is correct
Answer
In Game Theory, the scenario where two individuals must decide between cooperating or acting in their own self-interest is best illustrated by the Prisoner's Dilemma. In this game, two criminals are arrested and given a choice: if one betrays the other while the other stays silent, the betrayer goes free while the silent one gets a long sentence. However, if both stay silent, they receive a shorter sentence, and if both betray each other, they both get moderate sentences. The dilemma arises because, although cooperation leads to the best overall outcome, each individual tends to choose self-interest to avoid the risk of being betrayed. For example, if two friends are deciding whether to work together on a project or try to take credit for it individually, their decision can lead to a worse result if they both choose to act selfishly.
Detailed Explanation
The Prisoner's Dilemma shows how two people can end up worse off if they act selfishly instead of working together. Other options are incorrect because Some might think this is about cooperation, but it actually describes a stable situation where no one wants to change their choice; This term means one person's gain is another's loss.
Key Concepts
Game Theory
Strategic interactions
Payoff Matrix
Topic
Game Theory
Difficulty
medium level question
Cognitive Level
understand
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