Question

Very often, the reason that players can solve the prisoners' dilemma and reach the most profitable outcome is that A. the players play the game not once but many times. B. self interest results in the Nash equilibrium which is the best outcome for the players. C. the game becomes more competitive. D. each player tries to capture a large portion of the market share.

Answer 1

Answer:

B- Self interest results in the Nash Equilibrium which is the best outcome for the players.

Explanation:

Prisoner's dilemma: It is the answer in the game theory to the reason that why 2 conflicted parties doesn't cooperate. According to Prisoner's Dilemma, 2 conflicted individuals doesn't cooperate because they both are acting to secure their own self interest, considering that the collective interest would be far much better, but they are interested in win/lose situation.

Nash Equilibrium: This occurs when both parties realize that no extra benefit will incur if they change their strategy, so they both remain on the same strategy and solve the dilemma while getting the optimum outcome for both of them.