Prisoner's Dilemma

Prisoner's dilemma is a term used to describe certain types of non-zero-sum situations in game theory where rational self-interested individuals make choices that lead to suboptimal results. Many games are zero sum in that a positive result for one side (+1) will result in a loss (−1) for the other (+1, −1 = 0). In a prisoner's dilemma, however, the outcome is often negative for both parties. Economists, mathematicians, and psychologists, among others, use game theory to observe and predict the choices that people will make when faced with various outcomes. The games involve each player having preferences and choices about the outcomes. They have information about the options open to the other party but do not know exactly how they will behave. The outcomes ...