You’re correct, Conchis, but the notation confused me for a moment too, so I thought I’d explain it in case anyone else ever has the same problem. At first glance I saw (C,C) as the Nash equilibrium. It’s not:
I naturally want to read the payoff matrix as being in the form (x, y) where the first number determines the outcome for the player on the horizontal, and the second on the vertical. That’s how all the previous examples I’ve seen are laid out. (Disclaimer: I’m not any kind of expert on game theory, just an interested layperson with a bit of prior knowledge)
Now, this particular payoff matrix does have the players labelled 1 and 2, just not in the order I’ve come to expect, and indeed if one actually reads and interprets the co-operate/defect numbers, they don’t make any sense to a person having made the mistake I made above ^ which was what clued me in that I’d made it.
michael webster,
You seem to have inverted the notation; not Eli.
(D,D) is the Nash equilibrium, not (C,C); and (D,D) is indeed Pareto dominated by (C,C), so this does seem to be a standard Prisoners’ Dilemma.
You’re correct, Conchis, but the notation confused me for a moment too, so I thought I’d explain it in case anyone else ever has the same problem. At first glance I saw (C,C) as the Nash equilibrium. It’s not:
I naturally want to read the payoff matrix as being in the form (x, y) where the first number determines the outcome for the player on the horizontal, and the second on the vertical. That’s how all the previous examples I’ve seen are laid out. (Disclaimer: I’m not any kind of expert on game theory, just an interested layperson with a bit of prior knowledge)
Now, this particular payoff matrix does have the players labelled 1 and 2, just not in the order I’ve come to expect, and indeed if one actually reads and interprets the co-operate/defect numbers, they don’t make any sense to a person having made the mistake I made above ^ which was what clued me in that I’d made it.