Prisoners Dilemma:
You’ve probably come across this type of conundrum before:
If you understand Game Theory and the works of Nash, you should be able to come up with a solution
You are captured by the Russian KGB and are throw into some sort of court house. You have no clue why you are there and you are interrogated and accused as a spy. Just across in another soundproofed room, another quasi court house, there is another individual who was captured and accused of the same thing, and they don’t know what they have done to find themselves in such a predicament.
You have two choices, declares the judge. You can confess to what you believe is a trumped up charge or you can deny any wrongdoing. Here is the catch. The other convict is given the same choice whether to confess or deny.
You do not know what the other accused will plead.
If you confess, and the other denies, you will receive 1 year in jail and the other 25 years.
If you deny, and the other confesses, you will receive 25 years in jail and the other 1 year.
If both of you deny, then both of you get 3 years sentence.
If both of you confess, then both of you get 10 years sentence.
To chart this out
Other
Confess Deny
You Confess 10/10 1/25
Deny 25/1 3/3
So what do you plead? Think carefully.