Pareto Inefficient Outcome in the Thelma and Louise Prisoners' Dilemma

Two partners in crime, Thelma and Louise, are interrogated in separate rooms. They each have two choices: Accuse the other or Deny the crime. The potential outcomes, represented as years in prison, are shown in the matrix below (Thelma's outcome, Louise's outcome). A lower number of years is a better outcome for the individual. By analyzing each player's optimal choice for every possible action of the other player, determine the single equilibrium outcome of this scenario.

Justifying the Equilibrium Outcome

Consider the following payoff matrix for the Thelma and Louise prisoners' dilemma, where the outcomes are years in prison (Thelma's outcome, Louise's outcome). A lower number is a better outcome.

Statement: If Thelma is absolutely certain that Louise will choose to 'Deny', Thelma's best strategic choice to minimize her own prison time is to also 'Deny'.

Strategic Advice for Thelma

Critiquing a Flawed Strategy

The Instability of Cooperation

Thelma and Louise are in a classic prisoners' dilemma. The payoff matrix below shows their potential prison sentences in years (Thelma's sentence, Louise's sentence), where a lower number is a better outcome. To determine Thelma's dominant strategy, you must analyze her best response to each of Louise's possible actions. Match each scenario (Term) with the correct strategic conclusion for Thelma (Definition).

In the strategic problem where two partners, Thelma and Louise, are interrogated separately, the outcome where both choose to accuse the other is the stable result. This is because accusing is the best personal choice for each individual, no matter what the other partner decides to do. An outcome that results from each player choosing their single best option regardless of the other's choice is known as a ________ ________ equilibrium.

Evaluating Strategic Reasoning