Get Exclusive Benefits with
VIP star
Client Status
+ 1 888 907 2771 + 1 888 344 5595
← Economic Effects of the Black Death on EuropeBenefit or Harm of Outsourcing to US Economy →

Check Out Our Economics Theories Essay

Best Custom Writing Service
  • We'll write an essay from scratch according to your instructions
  • All papers are plagiarism free
  • Placing an order takes 3 minutes
  • Prices start from only 12.99/page

Prisoner Dilemma Game and Pareto Equilibrium

Condition for Pareto inferiority; z > x> 0 and that α < 0 and that:

 (NC, NC) = (αx, αx), (C, C) = (x, x), (NC, C) = (z, -z), (C, NC) = (z, -z) where NC implies not cooperative while C implies cooperative. This condition is not a Pareto optimal given that one player is cooperative while the other is not, the expected payoff is zero and given that 6 > 5 > 0, 0 < 1 the condition is Pareto-inferior equilibrium. The players cannot do better for themselves.

      ii.   There is a general concept by economists that players would trade off any condition that is Pareto inferior whereas neoclassical theorists reason out that a number of trade conditions would not favor Pareto optimality. In the game, the players could do better for themselves if the organization can protect the independence of each player to enable each player reach an independent Pareto-optimal situation. In addition, the players may not have played together at any given point resulting to ignorance of new partners about each other.

With one order you receive 5 in 1
  • Top quality of custom paper FREE feature
  • Plagiarism report (on demand) FREE feature
  • Own membership area FREE feature
  • Discounts FREE feature
  • Affiliate program FREE feature
Order now

VF = x(a), where xa > 0, xaa < 0 and also that x(0)> 1/ α, therefore by playing the game ten times the equilibrium will be given by VF = 10{x(a)}

For interaction with an informal player;

VI  = αx (a) which gives an equilibrium of 10{αx (a)} after ten interactions

The expected pay off is given by;

VFK, a > VIK -1, a = αωx (a) where VF is formal player and VI is an informal player.

FREE extras
  • Free cover page
  • Free table of contents
  • Free revision (during 48 hours)
  • Free outline (on demand)
  • Free plagiarism report (on demand)
We Guarantee
  • On-time delivery
  • Supreme quality products
  • No hidden charges
  • 24/7 customer support
  • Anti-plagiarism guarantee

Need more Economics Essay Examples?

Related essays

  1. Benefit or Harm of Outsourcing to US Economy
  2. Barnes and Noble Review
  3. Economic Effects of the Black Death on Europe
  4. Environmental Conservation