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The concepts of nash equilibrium and cooperation in the context of the prisoner's dilemma and stag hunt games. The interpretation of the prisoner's dilemma, the concept of utility, and the existence of nash equilibrium in various interaction scenarios. It also covers efforts to recover cooperation through altruism, reciprocity, and the shadow of the future. Axelrod's tournament is introduced as an example of iterated prisoner's dilemma, and the success of tit-for-tat strategy is explained.
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What should A (or B) do?
3 3
5 0
A cooperates
0 5
2 2
A defects
B defects B cooperates
The Utility (not the same as years in prison)
Given up your seat on the bus to … Altruism? Or being afraid of punishments?
Consider a public transport system relying on every one honestly paying (not verified)
2 2
3 1
C (steer away)
1 3
0 0
D
D C (steer away)
Nash equilibrium?