Canonical · Game Theory & Strategy · Model

The Prisoner's Dilemma

Merrill Flood and Melvin Dresher · 1950

"Two rational actors who cannot communicate or trust each other will often choose mutual betrayal even when mutual cooperation would leave both better off."

The idea

Two RAND researchers stumbled into game theory's most famous parable in 1950, later christened the prisoner's dilemma — showing rational self-interest can trap two people in a worse outcome than cooperation.

Why it works

The takeaway — recall it first

Nash Equilibrium

"In any strategic game, a stable outcome exists where no player can improve their result by changing strategy alone — everyone is already playing their best response to everyone else."

John Nash · PaperContinue→