10

Set 1: Central Ideas (Advanced)

Explanation

Answer: B

PASSAGE

The following text describes 'Game Theory' and the 'Prisoner's Dilemma'. Game theory is the mathematical study of strategic interaction. Its most famous scenario, the Prisoner's Dilemma, illustrates why two completely rational individuals might not cooperate, even if it appears that it is in their best interest to do so. If both prisoners cooperate (stay silent), they get a light sentence. If one betrays the other, the betrayer goes free while the other gets a heavy sentence. If both betray, both get a moderate sentence. The dominant strategy for a rational self-interested player is to betray, leading to a suboptimal outcome for both.

In the Prisoner's Dilemma, why is 'betrayal' considered the dominant strategy?

A. Because it guarantees the best possible outcome for the group
B. Because it yields a better payoff for the individual regardless of the opponent's choice✓ Correct
C. Because prisoners are inherently dishonest people
D. Because the rules of the game force players to speak

Detailed Explanation

Choice B is correct. In game theory, a dominant strategy is one that is optimal regardless of what the other player does. The text implies this by stating rational self-interest leads to betrayal.

Key Evidence:

• "rational self-interested player is to betray"

• "leading to a suboptimal outcome for both"

Why others are wrong: A (Opposite (leads to suboptimal outcome)), C (Irrelevant (Game theory assumes rationality, not character traits)), D (Not mentioned).

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