Describe the prisoners' dilemma game and explain why the Nash ...

[DyllonKazuo]

Describe the prisoners' dilemma game and explain why the Nash equilibrium delivers a bad outcome for both players.
 
  What will be an ideal response?

Question 2

FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
 
  A) Most economists believe the burden of the tax falls almost entirely on workers.
  B) Congress wanted the burden of the tax to be greater for employers than for workers.
  C) Most economists believe the burden of the tax falls mostly on employers.
  D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.

[anyusername12131]

Answer to Question 1

In the prisoners' dilemma game, each prisoner faces two strategies: confess or deny. There are four outcomes: i) Both prisoners confess and each receives more years in prison than if they both did not confess, ii) both prisoners deny, iii) prisoner A confesses and prisoner B denies, and iv) prisoner B confesses and prisoner A denies. In these last two outcomes, the confessing prisoner gets a lower sentence than if both confessed and lower than if they both denied. The dominant strategy for both prisoners is to confess. Regardless of what the other prisoner does, the best strategy for each prisoner is to confess, and both prisoners confess. This outcome is worse for both prisoners than if they each denied the crime, which creates the dilemma.

Answer to Question 2

A

[DyllonKazuo]

Thanks for the timely response, appreciate it

[bigsis44]

Great answer, keep it coming