Table 12.1 Utility Payoffs to Thief 1 and Thief 2 in a in a Classic

question 17

Multiple Choice

Table 12.1
Utility Payoffs to Thief 1 and Thief 2 in a Classic Prisoners' Dilemma Game
Payoffs are given as utility where U = 10-years in Jail

-According to,if Thief 1 confesses and Thief 2 remains silent to the crime,how many years in jail will each thief serve?

• A) Thief 1 - 2 years; Thief 2 - 2 years
• B) Thief 1 - 7 years; Thief 2 - 7 years
• C) Thief 1 - 0 years; Thief 2 - 10 years
• D) Thief 1 - 10 years; Thief 2 - 0 years

---

Definitions:

Indifference Curve

An indifference curve represents a combination of two goods between which a consumer is indifferent, showing equal utility or satisfaction levels.

Absolute Values

A number's distance from zero on the number line, disregarding its direction; always a non-negative value.

Favorite Bundle

The combination of goods or services that maximizes an individual's utility given their budget constraints.

Convex Preferences

A consumer preference pattern indicating a desire for mixed bundles of goods over extreme bundles, illustrating a preference for diversification.