Prisoner’s Dilemma

Picture this. 2 criminals are caught in the act. Let’s name them  A and B. They both are arrested and sentenced to jail for 6 years. However, there is a catch. If person A confesses and tells on B, he only gets 3 years of jail and B gets 9 years. This also works the other way; B confesses and gets 3 years while A gets 9 years. They are informed of this separately so neither A nor B knows that the other person also had the same offer. Now, if you were A or B, and you only have the information that you will get 3 less years if you confess, what would you do? Obviously, both have an incentive to confess, and most likely you will confess, but if both confess, both get 9 years, making it worse than the first alternative where neither confess. This is Prisoner’s Dilemma. It is part of Game Theory, and businesses tend to draw matrices with these options listed to figure their best price. One of the situations that could occur in Game Theory is the Prisoner’s Dilemma, where both make profit if one ‘cheats’ and other does not, but collectively make less if both ‘cheat’. Take this in the context of our lives. Our life is made up of decisions, and when there seems to be an opportunity, we are, more often than not, taught to grab the opportunity with both hands and use it. Not many take a step back and consider alternatives. When you learn about Game Theory, this is what you take away: every opportunity has alternatives, and not all alternatives have favourable outcomes, so be sure to check alternatives.