Question

Describe the prisoner's dilemma and provide is related to economics) an example. (make sure your example

Answer 1

Prisoner's dilemma is a classic example in the game Theory where it describes about two individuals who actually rational and don't corporate and go for a strategy which they feel is the best but end up getting not the best possible outcome all in all

For Example, let us take two companies, A and B, where both decided to set low price but due to both of them setting the low price the end up getting low profits and the right movies that if the both set the high price then they will get more profits