What does the Prisoner's Dilemma investigate?

The Prisoner's Dilemma is a fundamental concept in game theory that examines the interplay between cooperation and competition among individuals. It presents a scenario where two individuals are faced with the choice to either cooperate with each other or betray one another, with the outcomes dependent on the combined choices they make.

In the context of the dilemma, if both individuals cooperate, they receive a moderate benefit. However, if one betrays while the other cooperates, the betrayer receives a high payoff while the cooperator is left with the worst outcome. If both betray each other, they both receive a lesser payoff than if they had cooperated. This dynamic highlights the tension between individual self-interest and the collective good, emphasizing how rational actors may not always cooperate even when it is in their best interest to do so.

This scenario illustrates key concepts such as trust, negotiation, and the potential for conflict in decision-making situations, which are central to understanding social interactions and strategic behavior in psychology. The Prisoner's Dilemma is widely applicable in various fields, including economics, political science, and evolutionary biology, making it a pivotal study in examining how individuals balance competition versus cooperation.