1. The Prisoner’s Dilemma -Both arrested during botched bank robbery. -Kept in separate cells – NO COMMUNICATION. -Offered separate deals if they confess and cooperate.

2. The Prisoner’s Dilemma Jimmy Confess Don’t Confess Confess Don’t Confess Kendell Each serves 10 years. Kendell Goes Free, Jimmy Serves 20 Years Kendell Serves 20 Years, Jimmy Goes Free Each Serves 1 Year Payoff Matrix ↑

3. Each serves 10 years. Kendell Goes Free, Jimmy Serves 20 Years Kendell Serves 20 Years, Jimmy Goes Free Each Serves 1 Year The Dominant Strategy: the strategy that is better for one player, no matter what the other player does. Jimmy Confess Don’t Confess Kendell Confess Don’t Confess

4. $250, $200$450, $300 $180, $500$390, $400 The Dominant Strategy: there is not always a dominant strategy for both players, or for either player. Jimmy’s Tutoring Advertise Don’t Advertise Kendell’s Tutoring AdvertiseDon’t Advertise

5. $250, $200$450, $300 $180, $500$390, $400 Nash Equilibrium: the point where both players have made their best choice, taking into consideration what the other player does. Jimmy’s Tutoring Advertise Don’t Advertise Kendell’s Tutoring AdvertiseDon’t Advertise

6. $250, $200$450, $300 $180, $500$390, $400 Nash Equilibrium: the point where both players have made their best choice, taking into consideration what the other player does. Jimmy’s Tutoring Advertise Don’t Advertise Kendell’s Tutoring Advertise Don’t Advertise

7. $250, $200$450, $300 $180, $500$390, $400 Nash Equilibrium: the point where both players have made their best choice, taking into consideration what the other player does. Jimmy’s Tutoring Advertise Don’t Advertise Kendell’s Tutoring Advertise Don’t Advertise