Chapter 26 - Assignment 1: The Prisoners' Dilemma

1. Play this game using a strategy of cooperating each time. What is your average payoff?
2. Play this game using a strategy of competing each time. What is your average payoff?
3. Try using alternative strategies. Do any of these strategies perform better than one of those described above?
4. What strategy does the computer appear to be using?
5. If you know that this game is going to be played only once, what is the best strategy for you to pursue?
6. If you know that this game is to be played a fixed number of times, is there always an optimal strategy for the last move? If so, what is this strategy?
7. If this game is going to be repeated indefinitely, what is the best strategy for each participant to follow?
8. Explain how this game is related to oligopoly pricing behavior.