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Game Theory - Coggle Diagram
Game Theory
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The Prisoner’s Dilemma
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Dilemma:
Without communication, the rational choice leads both to Confess, although mutual silence would be better.
Possible Outcomes:
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One Confesses, one Silent → Confessor goes free; Silent gets 15 years.
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Nash Equilibrium:
{Confess, Confess} — because neither can improve their situation by changing strategy alone.
Setup:
Two prisoners, Alan and Ben, must independently decide to Confess or Stay Silent.
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Zero-Sum Games
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Example:
Coin toss payoff matrix, Rock-Paper-Scissors.
Definition:
If one player wins an amount X, the other player loses X.
Nash Equilibrium
Key Idea:
Each player is doing the best they can, given what others are doing.
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Definition:
A situation where no player has an incentive to change their strategy, given the strategy of others.
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