The prisoners' dilemma is a two-person game illus·trating thata. t he cooperative outcome could be worse for bothpeople than t he Nash equilibrium.b . even if the cooperative outcome is better than theNash equilibrium for one person, it might be worsefor the other.c. even if cooperation is better than the Nash equilibrium,each person might have an incentive not tocooperate.d . rational, seff·interested individuals will naturallyavoid the Nash equilibrium because it is worse forboth of them.

The prisoners' dilemma is a two-person game illus·trating thata. t he cooperative outcome could be worse for bothpeople than t he Nash equilibrium.b . even if the cooperative outcome is better than theNash equilibrium for one person, it might be worsefor the other.c. even if cooperation is better than the Nash equilibrium,each person might have an incentive not tocooperate.d . rational, seff·interested individuals will naturallyavoid the Nash equilibrium because it is worse forboth of them.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5CQQ

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