Game theory is stated as the study of different strategic interactions among the rational players that result in producing outcomes to the utilities of those players. This theory was introduced by the Mathematician, John Von Neumann and Economist, Oskar Morgenstern in 1944.
This theory is not only popularly used in mathematics, but it finds its application in other fields as well. Some of the subjects that include game theory include Social Science, Economics, Political Science, Computer Science, Biology, etc.In this context, Prisoner’s Dilemma Game is considered as the famous example of game theory.
For example, police have arrested two persons who have committed an armed robbery. But the policemen do not have enough evidence to send them for a jury to convict. Fortunately, they have some evidence that is sufficient to send them two years as prisoners. For this, the chief police officer has made some offer to each of the prisoners:
- If one of you confesses the robbery and the other do not confess, then you will get free and other will get 10 years of imprisonment.
- If both of you confess the robbery, then both of you will get 5 years of imprisonment.
- If neither you nor the other confesses the crime, then you shall get 2 years each for the robbery.
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