earn $0 and the other person will capture the entire market and will earn $200. Table 10.6 represents the

choices available to Mary and Raj. What is the best choice for Raj if he is sure that Mary will cooperate? If

Mary thinks Raj will cheat, what should Mary do and why? What is the prisoner’s dilemma result? What is

the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower

Output. (Each results entry lists Raj’s earnings first, and Mary's earnings second.)

Mary

B

A

A ($100, $100)

($200, $0)

Raj

B ($0, $200)

($150, $150)

TABLE 10.6

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10 • Problems 257

21. Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by

the police about their involvement in the crime. The police tell them each that if they confess and turn the

other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to
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