Question

Jim and Tim are two prisoners who are suspected of burglary and put in separate cells. Currently, the police do not have enough evidence to convict them of the burglary charge, but can convict them on possession of stolen goods. The police place them in separate cells and try to obtain a confession from one or both of them.

If neither Jim or Tim confess, they'll get the lesser charge of possession of stolen goods, therefore getting a sentence of 1 year. However, the police offer each prisoner a deal: if you rat out your partner, you get zero years in jail and the partner gets 10 years. If both prisoners confess, they will each get 8 years. The police tell the prisoners they are offering their partner the same deal, but the prisoners are separated and can't communicate.

Draw a payoff matrix for this dilemma.

Answer 1