Prisoner B

Remain Silent (cooperate with

Confess (do not cooperate with

other prisoner)

other prisoner)

A gets 2 years, B gets 2 years

A gets 8 years, B gets 1 year

A gets 1 year, B gets 8 years

A gets 5 years B gets 5 years

Prisoner

A

Remain Silent (cooperate with

other prisoner)

Confess (do not cooperate with

other prisoner)

TABLE 10.2 The Prisoner’s Dilemma Problem

The game is called a dilemma because if the two prisoners had cooperated by both remaining silent, they

would only have been incarcerated for two years each, for a total of four years between them. If the two

prisoners can work out some way of cooperating so that neither one will confess, they will both be better off

than if they each follow their own individual self-interest, which in this case leads straight into longer terms.

The Oligopoly Version of the Prisoner’s Dilemma

The members of an oligopoly can face a prisoner’s dilemma, also. If each of the oligopolists cooperates in
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