Understanding Prisoner's Dilemma

The video explores various examples of the Prisoner's Dilemma, including scenarios like charity donations, academic grading, war and peace, duopoly competition, and friendship apologies. It explains how each scenario involves a dominant strategy leading to a Nash Equilibrium, which is less preferred than a cooperative outcome. The video highlights the difficulty in sustaining cooperation due to the temptation to defect.

What is the Nash equilibrium in a Prisoner's Dilemma?

• When both players choose their dominated strategy

• When both players choose their dominant strategy

• When one player chooses a dominant and the other a dominated strategy

• When neither player has a dominant strategy

In the charity donation scenario, what is the dominant strategy?

• To donate only if others donate

• To donate half the amount

• To donate

• To not donate

Why do players prefer the dominated strategy in the charity scenario?

• It ensures personal recognition

• It minimizes personal cost

• It leads to a vibrant theater scene

• It maximizes individual utility

In the grading by the curve scenario, what is the dominant strategy?

• To study selectively

• To study only if others study

• To study

• To not study

What would the class prefer in the grading scenario?

• Only struggling students study

• No one studies

• Everyone studies

• Only top students study

In the war and peace scenario, what is the dominant strategy?

• To remain peaceful

• To form alliances

• To go to war

• To negotiate peace

Why might tribes prefer peace over war?

• To gain more territory

• To lose fewer lives

• To increase military strength

• To expand economic power

In a duopoly, what is the dominant strategy for firms?

• To invest in marketing

• To invest only if the other firm invests

• To invest

• To not invest

What do firms prefer in a duopoly scenario?

• Both firms invest in different areas

• Both firms invest

• Neither firm invests

• Only one firm invests

In a friendship dilemma, what is the dominant strategy?

• To apologize only if the other apologizes

• To apologize first

• To not apologize

• To apologize