In the prisoner's dilemma, the Nash equilibrium is: For both prisoners to cooperate. For both prisoners to defect. For one prisoner to cooperate and the other to defect.
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The prisoners' dilemma is a two-person game illus- trating that a. the cooperative outcome could be worse for both people than the Nash equilibrium. b. even if the cooperative outcome is better than the Nash equilibrium for one person, it might be worse for the other. c. even if cooperation is better than the Nash equilib- rium, each person might have an incentive not to cooperate. d. rational, self-interested individuals will naturally avoid the Nash equilibrium because it is worse for both of them.
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