The Prisoners’ Dilemma (PD) and its applications

Should the prisoners’ dilemma be resolved or not?The dilemma is that both end up in a unique Nash equilibrium with the payoff nil.The applications of such a setting can be observed in business competition as well.The dilemma can also be viewed from an interpersonal prospective.In the resolution of the dilemma we look at short-term scope.Under the assumption of the PD there is even not a loophole out of the dilemma.Table 1: Transnational Cooperation Dilemma.Both can choose between two production levels, either 2 or 4 million barrels of crude oil a day.Again, they have to decide simultaneously without knowing what the other is choosing.Both countries have a dominant strategy: both want to produce at the highest level of profits.