Purchase Solution

Prisoner's Dilemma game

Not what you're looking for?

Ask Custom Question

The following matrix shows the payoffs for an advertising game between Coke and Pepsi. The firms can choose to advertise or to not advertise. Numbers in the matrix represent profits; the first number in each cell is the payoff to Coke. (Numbers in millions.)

Coke (rows)/ Pepsi(columns) Advertise Don't Advertise
Advertise (10, 10) (500, -50)
Don't Advertise (-50, 500) (100, 100)

a. Explain why this would be described as a Prisoner's Dilemma game
b. Explain the probable outcome of this game

Purchase this Solution
Solution Summary

Prisoner's Dilemma game is denoted.

Solution Preview

a. Explain why this would be described as a Prisoner's Dilemma game
In game theory, the prisoner's dilemma is a type of non-zero-sum game in which two players try to get rewards by cooperating (don't ad) with or betraying (ad) the other player. In this game, as in many others, it is assumed that the primary concern of each ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Game Theory - dominant strategy for each firm

    Answer: This is a prisoner's dilemma game where two players might not cooperate even if it is in both their best interests to do so. Answer: Prisoner's dilemma This post identifies a scenario for a given game situation from game theory.

  • The Prisoner's Dilemma and the Nash Equilibrium

    628005 The Prisoner's Dilemma and the Nash Equilibrium Market Structures: Case Assignment Explain the Prisoner's Dilemma game, the notion of dominant strategy, and the concept of Nash equilibrium and cooperation.

  • Prisoner's Dilemma game

    Prisoner's Dilemma game is depicted here.

  • Why would this be described as a Prisoner's Dilemma game?

    Explain the probable outcome of this game. The solution file is attached. This solution discusses why this game fits the zero-sum framework of the prisoner's dilemma and demonstrates the probable outcome of the game.

  • Game theory, Nash equilibrium, and prisoner's dilemma

    Since at this point neither player can gain by lowering his price, there is no prisioner's dilemma. Game theory applied to Intel and AMD; determination of Nash equilibrium and presence of Prisoner's Dilemma.

  • payoffs for an advertising game between Coke and Pepsi

    Explain why this would be described as a Prisoner's Dilemma game. b. Explain the probable outcome of this game. Question 1 a.

  • grim trigger strategy

    155228 What is the grim trigger strategy, and how does it solve the Prisoner's Dilemma in repeated games? A. What is the grim trigger strategy, and how does it solve the Prisoner's Dilemma in repeated games? b.

  • Price and output

    Let me try to rephrase 1 so you can understand better. 1a This game is a version of prisoner's dilemma because it has the three properties (which characterises prisoner's dilemma).

  • Prisoner's Dilemma Discussed

    Random Rule), after reading the following information about the game. About the Prisoner's Dilemma: The prisoner's dilemma was originally formulated by mathematician Albert W.

View More Related Solutions