Tuesday, July 23, 2013

GAME OF “RATIONAL CHOICE”


Terms:

A and B are suspect persons.

They are under arrest and interrogated separately.

Everyone’s future depends on everyone’s behavior (refutation or confession)

In this situation all choices are accepted rationally.

 
 
A
B
 
State 1
Behavior
confession
refutation
Outcome
1 year arrest
free
 
State 2
Behavior
confession
confession
Outcome
3 years arrest
3 years arrest
 
State 3
Behavior
refutation
refutation
Outcome
5 years arrest
5 years arrest

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