Chapter 02 of 5
The Payoff Matrix
The cold mathematical structure of rewards and punishments.
- Mechanism
The Decision Table
A payoff matrix is a simple grid that maps out every possible outcome based on the choices of two players.
- Terminology
Cooperate or Defect
In game theory, you either 'Cooperate' by staying silent or 'Defect' by betraying your partner for a lighter sentence.
- Scale
The Four Quadrants
There are four possible intersections of choice: CC, CD, DC, and DD. Each yields a radically different sentence.
17 more cards in this chapter
Could you answer this?
In the standard Payoff Matrix, which outcome represents the 'Nash Equilibrium' where neither player benefits from changing their choice alone?
🤝 The Prisoner’s Dilemma: The Logic of Betrayal
- 01The Interrogation RoomFoundational logic of the original RAND Corporation thought experiment.
- 02The Payoff MatrixThe cold mathematical structure of rewards and punishments.
- 03The Infinite GameShifting from one-off betrayals to repeated interactions.
- 04Tit-for-Tat: The TournamentRobert Axelrod’s discovery of the most successful evolutionary strategy.
- 05Nash Equilibrium in the WildApplying the dilemma to nuclear arms, trade wars, and ecology.