TED-Ed: How to outsmart the Prisoner's Dilemma | Lucas Husted

Crispy and Chewy, two rational gingerbread men, face a dilemma posed by a fox. They must choose to spare or sacrifice each other, with outcomes based on their decisions. This scenario is a classic prisoner's dilemma, where betrayal is the Nash equilibrium. However, when the dilemma repeats infinitely, they can use future decisions as leverage, leading to potential cooperation if they value future outcomes enough. This concept applies to real-world situations like trade and politics, where long-term cooperation can be beneficial.

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