Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Both players cooperate
B
Both players defect
C
Player A cooperates while Player B defects
D
Player A defects while Player B cooperates
Understanding the Answer
Let's break down why this is correct
Answer
In this game, a Nash Equilibrium occurs when neither player can improve their payoff by changing their strategy while the other player's strategy remains the same. Here, if both players choose to cooperate, they each get 3, but if one defects while the other cooperates, the defector gets 5 and the cooperator gets nothing. If both players defect, they both receive 1; however, this is worse than cooperating together. Therefore, the Nash Equilibrium in this game is when both players choose to defect, as neither player can unilaterally change their strategy to get a better outcome. For example, if Player A defects while Player B cooperates, Player A gets 5, but if Player B decides to defect instead, Player A's best response is to defect as well, leading them both to the payoff of 1.
Detailed Explanation
In this game, if both players defect, they each get 1 point. Other options are incorrect because Some might think cooperation is best since they both get 3 points; This option seems appealing, but it shows a misunderstanding.
Key Concepts
strategic interaction
non-cooperative game
Topic
Nash Equilibrium in Game Theory
Difficulty
medium level question
Cognitive Level
understand
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