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The Vs. The Prisoner 's Dilemma Essay

Decent Essays

“People are irrational” and no game further highlights this point, then the Ultimatum Game and/or the Prisoner’s Dilemma (Poundstone). Either represented by a 2x2 box or a Game Tree, one can determine what is the “rational” decision, and which decision is most likely to be made based on the circumstances surrounding the decision making process. There are a variety of factors that influence the outcomes of these games such as the circumstances of the persons playing, personality of the person playing (i.e. risk averse or accepting), and perhaps the environment in which one plays the game. Hence the fact that lab tests are not quite “real world” accurate. They can’t take into account every single factor that may influence a decision. Game Trees, as mentioned earlier, are very useful in determining what outcomes are most likely to occur, in other words, the most rational and logical decision. For example, Poundstone describes a dilemma between a thief trying to sell a priceless item and a questionable man with few scruples. The scenario is a perfect example of the “Prisoner’s Dilemma” and can be analyzed using a Game Tree. The most logical decision for both parties is to cheat, or select Traitor. Yet this decision undermines the “common good” of mutual cooperation which benefits both parties. Logic is what blocks the best outcome, simply due to the fact that rationality dictates a prime strategy of cheating and defection. The trend in such situations, similar to a business

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