Purchase Solution

example of the prisoner's dilemma

Not what you're looking for?

Ask Custom Question

5. Nintendo and Sony Playstation are each planning to introduce one new game into the market. Each is considering three different kinds of games: an urban action game like Grand Theft Auto, an adventure game like Tomb Raiders, or a strategy game like SimCity The table shows each firm's profits (Sony's profit first) in millions of dollars.
Nintendo
Grand Theft Tomb Raiders Sim City
Grand Theft 2, 2 7, 3 8, 4
Sony Tomb Raiders 3, 10 -3, -3 1, 2
Sim City 4, 8 2, 1 -7, -7
a. Assuming the firms act independently, find the dominant strategy for both player (if exist), and the (Nash) equilibrium(a). Briefly, explain your answer. Is this game an example of the prisoner's dilemma?
b. Nintendo knows for a fact that Sony will not decide on its new project for four months. As CEO of Nintendo, what would you do immediately based on the analysis above?
c. If the firms were free to coordinate their decisions, what agreement (and actions) would they take? Explain briefly.

Purchase this Solution
Solution Summary

An example of the prisoner's dilemma is evaluated.

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

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

Elementary Microeconomics

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

Economics, Basic Concepts, Demand-Supply-Equilibrium

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

Basics of Economics

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

View More Free Quizzes
Related BrainMass Solutions

  • Prisoner's Dilemma: Strategic Decision Making

    The use of a prisoner's dilemma can be to cooperate on the initial iteration, and after that, the company does what the competitor did on the previous move.

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

    Is this an example of the Prisoner's Dilemma? Please see attached excel matrix.

  • Nash Equilibrium (Pure Strategy) and Prisoner's Dilemma

    Hence, this is not the example of Prisoner's Dilemma. Solution assumes pure strategy Nash Equilibrium.

  • Cartel cheating

    Price competition and prisoner's dilemma example OPEC Opec has 11 oil producing countries and they set a fixed amount of output collectively to profit maximize.

  • The Prisoner's Dilemma of cooperation

    376404 The Prisoner's Dilemma of Cooperation A prisoner's dilemma is a situation where two parties choose to cooperate or not, and where both gain when both cooperate, but if only on cooperates the other gains even more, while if both do not cooperate

  • 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.

  • Prisoner's Dilemma.

    Prisoner's Dilemma.

  • Prisoner's Dilemma game

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

  • 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.

View More Related Solutions