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
Manufacturing cost data for Sassafras Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufa

Describe Financial budgets Financial budgets: financial budgets are concerned with cash receipts and disbursements working capital expenditure financial position and business o

How much was Topaz’s operating income (income before taxes) last year?

what does it mean by improving materials usage in an organization?

Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales

Describe Benchmarking It is the process of measuring products service or activities against the best level of performance which may be found either inside or outside the organi

2. Draw the network diagram for the following problem and indicate a sequence of plans that the company should want to consider in making a time-cost tradeoff. The company is not

Define Materials cost variance Material cost variance (MCV) is the difference between the standard cost of material specified and the actual cost of materials used." It is the

Interpretation of equity ratio As equity ratio show the relationship of owner funds to total assets higher the ratio or the share of the shareholders in the total capital of th

Ask question #1.The annual overhead costs for Mona Claire Holdings which has three production centres and two service centres as follows; Indirect wages and supervision Machine