Game Theory and the Prisoners’ Dilemma
Strategic Rationality
In this chapter, Daniel Little indicates that under circumstances of uncertainty and risks, decision-makers attempt to maximize utility through collecting information of the utility and analyzing the probability of each feasible choice. Finally the maximum expected payoff of outcomes is given to the decision-maker since all other decision makers also made the rational decisions. Also strategic rationality is embodied on interactive social behavior that these individual decision-makers make choices regard to predictions about the other decision-makers’ next move in performance, the choices that other agents made lead to the level of outcomes that individual decision-maker would receive. Generally speaking, individual choices are made from strategic interaction and under circumstances of uncertainty.
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According to Little, in a zero-sum game whatever one player’s gain is exactly equal to the loss of other players; the player share no interests in this competition which the sum of the two play’s payoffs is zero. By contrast, the sum of the two players’ payoffs for a given outcome in a non-zero-sum game may be positive or negative. Therefore, competition and cooperation are permitted involves in a positive-sum