18:19
that's at least $300
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LSDefine
Simple English definitions for legal terms
prisoner's dilemma
Read a random definition: view of an inquest
A quick definition of prisoner's dilemma:
The prisoner's dilemma is a problem where two people are being questioned about a crime they may have committed. If both people confess, they will each get a 5-year sentence. If neither confesses, they will each get a 3-year sentence. If one person confesses and the other doesn't, the person who confesses will only get a 1-year sentence while the other person will get a 10-year sentence. This problem is often used to show how working together can be better than working alone.
Another important term to know is "externality." This means that when someone does something, it can have an effect on other people. Sometimes this effect is good, like when a neighbor makes their yard look nice and it makes the whole neighborhood look better. Other times, the effect is bad, like when a factory pollutes the water and it makes people sick.
A more thorough explanation:
Prisoner's dilemma is a logic problem that is often used to show the effect of cooperative behavior. It involves two prisoners who are being questioned separately about their involvement in a crime. The possible outcomes are:
- If both confess, they will each receive a 5-year sentence.
- If neither confesses, they will each receive a 3-year sentence.
- If one confesses but the other does not, the confessing prisoner will receive a 1-year sentence while the silent prisoner will receive a 10-year sentence.
This dilemma shows that sometimes, even if it is in their best interest to cooperate, individuals may not do so because they fear the consequences of trusting the other person.
For example, imagine two companies that are competing in the same market. If they both agree to keep prices high, they will both make more profit. However, if one company decides to lower their prices, they will attract more customers and make more profit than the other company. This creates a dilemma where both companies may be better off if they cooperate, but they may not trust each other enough to do so.
Another example is pollution. A factory may benefit from producing goods, but the pollution it creates may harm the environment and nearby communities. This is a negative externality because the factory is causing harm without compensating those affected.
On the other hand, a homeowner who beautifully landscapes their property may increase the value of neighboring homes. This is a positive externality because the homeowner is benefiting others without receiving compensation.