Prisoner''s dilemma- non-zero sum games, Managerial Accounting

Prisoner's Dilemma

To understand the prisoner’s dilemma, let’s consider a story as follows:

Two peoples are arrested for a crime. The police lack enough evidence to convict either suspect and consequently need them to give testimony against each other.

The police tell each suspect that if he testifies against the other (or does not cooperate with the other), he will be rewarded for testifying and hence will be released, provided the other suspect does not testify against him. If neither testifies, the prosecutor will be unable to prove the crime and each suspect can only receive minor sentence. If both suspects confess and testify against each other, then both will receive an intermediate prison sentence. Hence the conflict of interest, the tendency to double cross and lose the confidence of the other.

Each suspect must decide under the circumstances, whether or not to confess.

It is possible to translate such a situation in the form of a table and a payoff matrix as follows:

278_table1.jpg



Payoff Table

213_table2.jpg

This is an example of non-zero sum, non-cooperative game.

Posted Date: 12/8/2012 4:11:51 AM | Location : United States







Related Discussions:- Prisoner''s dilemma- non-zero sum games, Assignment Help, Ask Question on Prisoner''s dilemma- non-zero sum games, Get Answer, Expert's Help, Prisoner''s dilemma- non-zero sum games Discussions

Write discussion on Prisoner''s dilemma- non-zero sum games
Your posts are moderated
Related Questions
1. A firm's independent auditors have the responsibility to: a. assess the firm's accounting policies. b. ascertain the firm's profit potential. c. uncover all fraudulent

Controlling Things hardly go exactly as planned, and management should make a concerted effort to the monitor and adjust for their deviations. The managerial accountant is the

THE BASIC EOQ MODEL This is the most simple of all the models discussed. In addition to the general assumptions which relate to all deterministic models (i.e. certainty of all

Explain Quality control and Total quality control Quality control (QC) circles can be viewed as a group oriented suggestion system for making improvements. QC circle is a sm

Activity Based Costing (ABC) differs from Absorption Costing (AC) in the manner in which overheads are charged to units. ABC charges overheads to units based on their proportion

Explain about Office and administrative expenses These expenses are not related to factory but they pertain to the management and administration of the business. Such expenses

INTERPRETING THE SIMPLEX TABLEAU We can now see that our attention must be directed to reading, interpreting and analyzing the (simplex) results. It is erroneous, however, to a

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

The current sales of M/s ABC are Rs.100 lakhs. Through relaxing the credit standards the firm can produce additional sales of Rs.15 lakhs on that bad debt losses would be 10 percen

Have lot of questions please any one help me