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

question 255

Multiple Choice

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

• A)because each player had agreed before the game started to minimize the harm that he can inflict on the other players
• B)because each player is uncertain how other players will play the game
• C)because players must choose from a limited number of non-dominant strategies
• D)because each rational player has a dominant strategy to play a certain way regardless of what other players do

---

Definitions:

Capital Contribution

The funds or resources that owners inject into a company or partnership to support its operations and growth.

Personal Use

The use of a company's assets or services by an individual for their private needs, not for business purposes.

Income Ratio

A financial metric used to assess a company's ability to generate income relative to revenue, sales, assets, or equity.

Capital Balances

The amount of money or value of assets contributed by the owners or partners in a company, not including earnings or profits.