I am on the chapter for Oligopoly
Question:
A prisoners' dilemma game demonstrates how cooperative action is often not rational, even though:
A. Prisoners are ot capable of individual choice
B Cooperation would make everyone worse off
C. Cooperation would make everyone better off
D. All of the above can be demonstrated with a prisoners' dilemma game
I picked D?
To determine the correct answer to this question, let's break down the options:
A. "Prisoners are not capable of individual choice": This statement is incorrect. In a prisoners' dilemma game, the players have the ability to make individual choices that can affect the outcome.
B. "Cooperation would make everyone worse off": This statement is also incorrect. In a prisoners' dilemma game, cooperation between the players could potentially lead to a better outcome for all involved.
C. "Cooperation would make everyone better off": This statement is generally true. The optimal outcome in a prisoners' dilemma game occurs when both players choose to cooperate. By cooperating, the players can achieve a more desirable outcome compared to if they both choose to defect (act in their own self-interest).
D. "All of the above can be demonstrated with a prisoners' dilemma game": This statement is correct. In a prisoners' dilemma game, all of the options mentioned above can be demonstrated. Players have the ability to make individual choices, cooperation can lead to a better outcome for all involved, and defection can result in a worse outcome for everyone.
Therefore, the correct answer is indeed D.