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Why Does a Prisoner's Dilemma Lead to a Noncooperative Equilibrium

question 159

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Why does a prisoner's dilemma lead to a noncooperative equilibrium?


Definitions:

Employer Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, including social security and Medicare taxes.

Social Security Tax

A mandatory payroll tax collected to fund the Social Security program, providing retirement, disability, and survivors' benefits.

Medicare Tax

A federal tax that funds the Medicare program, which is withheld from an employee's paycheck and also matched by the employer.

FICA Tax

A federal tax in the United States that funds Social Security and Medicare, contributed by both employees and employers.

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