The Prisoner's Dilemma

The video discusses the prisoner's dilemma, a scenario in game theory where two accomplices must decide whether to betray each other or stay silent. Mathematician John Nash introduced the concept of Nash equilibrium, where both parties make decisions that are optimal for themselves but not necessarily for the group. This theory is applied to the Cold War, illustrating how the U.S. and Soviet Union continued to build nuclear weapons despite the optimal outcome being disarmament. The Nash equilibrium explains why both sides acted in their own interest, leading to an arms race rather than cooperation.

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