It is a "stable" outcome because each player's choice is the best possible response to the choices of the other players.
Posts tagged as “Prisoner’s Dilemma”
It is a variant of the famous Iterated Prisoner's Dilemma, and it is used to model and analyze the dynamics of conflict and cooperation, particularly between nations or competing groups.
The Prisoner's Dilemma is a foundational concept in game theory, a field of mathematics and economics that studies strategic decision-making in situations where the outcome for one person depends on the choices of others.
Game Theory models mathematically strategic interactions between competitors, useful for analyzing pricing strategies, market entry, etc.