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Game Theory β€” Prisoner's Dilemma

Audience: UniversityCategory: Economics

Description

Introduces the Prisoner's Dilemma, a foundational concept in game theory. Shows a 2x2 payoff matrix, animates two prisoners making independent decisions, explains why (Defect, Defect) is the Nash Equilibrium even though mutual cooperation is Pareto superior. Highlights dominant strategies and the Nash Equilibrium condition.

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