Question

Draw the prisoners dilemma payoff matrix. What are the dominant strategies in this game?

Draw the prisoners dilemma payoff matrix. What are the dominant strategies in this game?

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Answer #1

Here,we have two restaurants one is All eat and other is good grub. This game is a prisoners dilemma because if he restaurant act rationally and for their own benefit they will make a lesser profit and if they collude they will make better profit but that will not be individually rational. Here, the choice is between cleaning and not cleaning the restaurant. if they both clean they will make 8000 each, if none of them cleans they will make 11,000 each. if one of they cleans the cleaner one will make 16,000 and the other one will be at 4000.

The dominant strategy in this game is both will clean their restaurant and make a profit of 8000 only.

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