Assignment 5

Prisoner’s Dilemma Game


I. Two partners in crime are being interrogated separately. The state lacks evidence to convict them of the crime they committed but can convict both on a lesser charge with a sentence of 1 year. The prosecutor wants a conviction on the more serious charge.

He tells each of them: “if you confess but your partner does not, I will use your testimony to convict him; you will go free and he will get 10 years. If you both confess, you both go away for three years.” Will the prisoners cooperate with one another or confess?





Prisoner 2





Prisoner 1





 -1,   -1


  -10,  0





  0,  -10



   -3,  -3



1. What is the dominant strategy for Prisoner 1?


2. Why?



3. What is the dominant strategy for Prisoner 2?


4. Why?



5. What is the equilibrium of this game? 



6. What does “collective action problems” mean? Discuss.



II. Read the following article and answer the questions below.

Article: "Tragedy of the Commons"

1. Discuss an example where you see collective action problems.



2. What factors or conditions do you think can solve collective action problems?


Show your assignment to the instructor during the lab hours. Deposit your assignment into Blackboard later. Do not include any unnecessary or wrong output.