Economics: Difference between revisions
| Line 31: | Line 31: | ||
=== Opportunity cost === | === Opportunity cost === | ||
=== Prisoner's Dilemma === | === Prisoner's Dilemma === | ||
* each | * the "prisoner's dilemma" represents a clash of individual versus group interests | ||
** "dilemma" = a problem for which the solutions all reach a negative outcome | |||
*** as opposed to a "paradox" | |||
**** which is a problem that has no solution, the solution is never-ending, or the solution yields an outcome that negates the original problem | |||
* in the prisoner's dilemma, two prisoners must select between 1) confess to the crime or 2) remain silent | |||
** each is held separately and does not know what the other will choose | |||
* Option 1 choices: | |||
** Prisoner 1 (P1) confesses | |||
** Prisoner 2 (P2) remains silent | |||
** outcome: P1 goes free & P2 serves the worst jail sentence with no chance for parole (no chance to be let out of jail early) | |||
* Option 2 choices | |||
** P1 remains silent | |||
** P2 confesses | |||
** outcome: P2 goes free & P1 serves the worst sentence | |||
* Option 3 choices: | |||
** both confess | |||
** outcome: both serve the worst jail sentence but will be allowed "early parole" (let out early) | |||
* Option 4 choices: | |||
** both remain silent | |||
** outcome: both will face a lesser charge and less jail time | |||
{| class="wikitable" | |||
|+Prisoner's Dilemma Choice Matrix | |||
!Option | |||
!Best outcome | |||
individually | |||
!Worst outcome | |||
individually | |||
!Worst outcome | |||
collectively | |||
!Best outcome | |||
collectively | |||
!Highest risk | |||
indivdiually | |||
!Lowest risk | |||
individually | |||
|- | |||
|'''Option 1:''' | |||
* P1 confesses/ | |||
* P2 remains silent | |||
|P1 goes free | |||
|P2 serves longest term | |||
|↑ | |||
| | |||
|↑ | |||
| | |||
|- | |||
|'''Option 2:''' | |||
* P2 confesses/ | |||
* P1 remains silent | |||
|P2 goes free | |||
|P1 serves longest term | |||
|↑ | |||
| | |||
|↑ | |||
| | |||
|- | |||
|'''Option 3:''' | |||
* both confess | |||
| | |||
| | |||
| | |||
|↑ | |||
| | |||
| | |||
|- | |||
|'''Option 4:''' | |||
* both remain silent | |||
| | |||
| | |||
| | |||
|↑ | |||
|↑ | |||
| | |||
|- | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|} | |||
* | |||
* | |||
* the most potentially beneficial option for themselves individually, they both will serve the longest jail term | |||
* however, if both choose the | |||
** even if choosing collectively would be more rational & mutually beneficial | ** even if choosing collectively would be more rational & mutually beneficial | ||
* see https://plato.stanford.edu/entries/prisoner-dilemma/ | * see https://plato.stanford.edu/entries/prisoner-dilemma/ | ||