1. 1 Selfishness in P2P Networks

2. U C B E R K E L E Y C O M P U T E R S C I E N C E 2 Introduction to Game Theory Prisoner Dilemma Two members A, B of a criminal gang are arrested and put in separate solitary confinement. The prosecutors lack sufficient evidence and hope to convict them of at least to a lesser charge to get both sentenced to one year in prison. But they offer each prisoner a bargain. Each prisoner is given the opportunity either to: betray the other, or confess the crime by remaining silent. The offer is: If A and B each betray the other, each serves 2 years in prison If A betrays but B confesses, then A will be free but B will get 5 years ( and vice versa ) If A and B both confess, then both of them will only serve 1 year in prison

3. U C B E R K E L E Y C O M P U T E R S C I E N C E Prisoner’s dilemma 3 What will A and B do? What is the lesson?

4. U C B E R K E L E Y C O M P U T E R S C I E N C E Prisoner’s dilemma 4 Because betraying the fellow criminal offers a greater reward than cooperating (i.e. confessing), all purely rational self-interested prisoners will betray the other, and thus both Will get 5 years instead of 1 year. Selfishness is often considered rational, but there is a price.