Home > Terms > Armenian (HY) > բանտարկյալի երկընտրանք

բանտարկյալի երկընտրանք

A favorite example in game theory, which shows why co-operation is difficult to achieve even when it is mutually beneficial. Two prisoners have been arrested for the same offence and are held in different cells. Each has two options: confess, or say nothing. There are three possible outcomes. One could confess and agree to testify against the other as state witness, receiving a light sentence while his fellow prisoner receives a heavy sentence. They can both say nothing and may be lucky and get light sentences or even be let off, owing to lack of firm evidence. Or they may both confess and probably get lighter individual sentences than one would have received had he said nothing and the other had testified against him. The second outcome would be the best for both prisoners. However, the risk that the other might confess and turn state witness is likely to encourage both to confess, landing both with sentences that they might have avoided had they been able to co-operate in remaining silent. In an oligopoly, firms often behave like these prisoners, not setting prices as high as they could do if they only trusted the other firms not to undercut them. As a result, they are worse off.

0
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

Thuy Do
  • 0

    Terms

  • 0

    Blossaries

  • 0

    Followers

Industry/Domain: Zoology Category: Zoological terms

phylum placozoa

Macroscopic, flattened marine animals, composed of ventral and dorsal epithelial layers enclosing ...

Thuy Do
  • 0

    Terms

  • 0

    Blossaries

  • 0

    Followers

Industry/Domain: Zoology Category: Zoological terms

phylum cnidaria

Cnidarians. Hydras, hydroids, jellyfish, sea anemones, and corals. Free-swimming or sessile, with ...

qys1978
  • 0

    Terms

  • 1

    Blossaries

  • 0

    Followers

Industry/Domain: Accounting Category: Auditing

share a term with millions

Share a term with millions of users around the world and increase your online visibility.Share a ...

Bob
  • 0

    Terms

  • 1

    Blossaries

  • 5

    Followers

Industry/Domain: Plants Category: Trees

oak

Genus native to the Northern Hemisphere with spirally arranged leaves, catkins for flowers and ...

Bagar
  • 0

    Terms

  • 64

    Blossaries

  • 6

    Followers

Industry/Domain: Geography Category: Geography

Everest

The last but not least mount Everest. The Earth's highest mountain, with a peak at 8,848 metres ...

David Parkin
  • 0

    Terms

  • 1

    Blossaries

  • 36

    Followers

Industry/Domain: Plants Category: General plants

aglaonema

Genus of about 20 species of usually rhizomatous, evergreen perennials from tropical forest in Asia. ...

Aidan Teare
  • 0

    Terms

  • 0

    Blossaries

  • 6

    Followers

Industry/Domain: Science Category: General science

Robojelly

Robojelly is a hydrogen-powered robot desgined in the United States that moves through the water ...

  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: People Category: Entrepreneurs

Ferdinand Porsche

Ferdinand Porsche (3 September 1875 – 30 January 1951) was an Austrian-German automotive engineer ...

  • 0

    Terms

  • 40

    Blossaries

  • 4

    Followers

Industry/Domain: Broadcasting & receiving Category: News

Marzieh Afkham

Marzieh Afkham, who is the country’s first foreign ministry spokeswoman, will head a mission in east ...

  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Accounting Category: Auditing

define1

Share a term with millions of users around the world and increase your online visibility.Share a ...

Featured blossaries

Renewable Energies

Category: Geography   1 1 Terms

Social Work

Category: Health   1 21 Terms