Student Name: Cathal Quigley
Student Number: 111401688
Lecturer: David Butler
Module Code: EC4225 – The Economics of Strategy
Submission Date: 31/03/2015
Q1. Describe your chosen game and explain the unique features of it?
Prisoner’s Dilemma in Game Theory is the best-known game of strategy in the social sciences and it helps us to understand what governs cooperation and competition in business, politics, sports, social settings and much more.
In the traditional version of the Prisoner’s Dilemma, the police have arrested two suspects of a crime and are interrogating them separately. The police cannot tie the suspects directly to the crime they have been arrested for so they have devised a strategy in the attempt of getting a confession out of the suspects. If neither suspect confesses to the crime they will be charged on a lesser crime and serve less time in jail. In the games simplest form, there are two prisoners A and B and four possible outcomes of the interrogation. If Prisoner A and Prisoner B both confess to the crime both will serve a three-year jail sentence; if Prisoner A confesses to the crime and Prisoner B denies the crime, Prisoner A will serve a one-year jail sentence while Prisoner B …show more content…
As these dealings between the NBA and NBPA will be happening on an regular occurrence, mutual cooperation is best but this is where Axelrod’s idea of “Shadow of the Future`’ comes into play massively. Like the game suggests the party who cheats now gets their reward immediately and punishment lies in the future but in decisions like the NBA Lockout the one who cheat may ultimately be rewarded in the future. If either party was to back down it may set the precidence for future decision making and they may be expected to back down again to keep the other party
Student Number: 111401688
Lecturer: David Butler
Module Code: EC4225 – The Economics of Strategy
Submission Date: 31/03/2015
Q1. Describe your chosen game and explain the unique features of it?
Prisoner’s Dilemma in Game Theory is the best-known game of strategy in the social sciences and it helps us to understand what governs cooperation and competition in business, politics, sports, social settings and much more.
In the traditional version of the Prisoner’s Dilemma, the police have arrested two suspects of a crime and are interrogating them separately. The police cannot tie the suspects directly to the crime they have been arrested for so they have devised a strategy in the attempt of getting a confession out of the suspects. If neither suspect confesses to the crime they will be charged on a lesser crime and serve less time in jail. In the games simplest form, there are two prisoners A and B and four possible outcomes of the interrogation. If Prisoner A and Prisoner B both confess to the crime both will serve a three-year jail sentence; if Prisoner A confesses to the crime and Prisoner B denies the crime, Prisoner A will serve a one-year jail sentence while Prisoner B …show more content…
As these dealings between the NBA and NBPA will be happening on an regular occurrence, mutual cooperation is best but this is where Axelrod’s idea of “Shadow of the Future`’ comes into play massively. Like the game suggests the party who cheats now gets their reward immediately and punishment lies in the future but in decisions like the NBA Lockout the one who cheat may ultimately be rewarded in the future. If either party was to back down it may set the precidence for future decision making and they may be expected to back down again to keep the other party