Name Muhammad Ahmad

CMS 290929
Section B
Course Professional Ethics
Submitted to Sir Asad Hanif
 The Prisoners Dilemma
Dilemma
Two prisoners A and B, suspected of committing a robbery together, are isolated
and urged to confess. Each one is concerned with the shortest prison sentence for
himself. Each one must decide whether to confess or not without knowing his
partner’s decision.
 If one confesses and the other does not, then the one who will confess will
not go to jail but the other one will go to jail for 20 years.
 If both confess both will go to jail for 10 years.
 If no one confesses, both will go to jail for one year.

A is A is not
Confessing Confessing
B is
10 , 10 20 , 0
Confessing
B is not
0 , 20 01 , 01
Confessing

John Forbes Nash Jr

John Forbes Nash Jr was an American Mathematician. He did his Ph.D. in 1950 in
non-cooperative games (A game in which competition between individual players,
and no one wants to cooperate with others). He contributed to game theory
through Nash Equilibrium theory. He presented his theory of Nash Equilibrium in
his Ph.D. thesis, supervised by Albert William Tucker, with applications of Nash
Equilibrium theory.
Nash Equilibrium Theory
“The optimal outcome is the one where no one wants to stand to gain,
by choosing to change the strategy assuming other players will not
change theirs.”
The solution according to Nash Equilibrium
The last option in the table is a stable option in which no one is confessing, and
both will go to jail for only one year. After one year both will be free from jail due
to lack of evidence. But according to Nash Equilibrium theory, both will change their
strategy by assuming that the other person will not change the strategy. Ultimately,
this will cause the result of an unstable option in which both will confess.

Nash Equilibrium Theory in Real Life

 Ahmad and Jawad are two friends studying in the 6th semester (ESEs are too
nearer) at NUST. They both decided to make a final-year project group with
each other. They decided to go with Dr. Khurram as an advisor. They
discussed their FYP idea with Dr. Khurram. Dr. Khurram gave them the
assignment to bring one pager assignment with details of the objectives and
a little background of the final year project’s topic after two days. Both
decided that both will make one pager separately and the best one will be
presented to Dr. Khurram. Both Jawad and Ahmad did nothing in two days
and thought that this task is the very first task also in the group so both will
get the same marks and they need to focus on the end-semesters exam. This
caused trouble for both.
 There is a standard traffic light at an intersection. Two cars approach the
intersection perpendicularly. One of them sees a red light and it is in his
best interest to stop to avoid an accident. The other driver sees a green
light. It is in his best interest to continue across the intersection to minimize
his travel time. Both drivers benefit from the arrangement, and they
consequently follow through even though there are no policemen to
enforce the law.

 Recommended real-life example https://youtu.be/jILgxeNBK_8

Limitations of Nash Equilibrium Theory
Nash equilibrium theory is having some limitations:
 You need to know the opponent’s strategy.
 only be applied if one stayed with their current strategy.
 Not talk about right/wrong.

Generalization
If we want a well-mannered society then we must have to work for the benefit of
others irrespective of being selfish people and only thinking about our benefits.
When we will work for the welfare of society and not for our benefit it will
ultimately produce better and long-lasting results. We can see so many examples
when people give importance to moral values and acted to do something for
society it brings revolutions in society.
Recommended Article
https://studiousguy.com/game-theory-examples-in-real-life/

References
https://youtu.be/LLjVM-Kjtok

https://en.wikipedia.org/wiki/John_Forbes_Nash_Jr.

https://www.britannica.com/science/game-theory/The-prisoners-dilemma

https://en.wikipedia.org/wiki/Nash_equilibrium

https://en.wikipedia.org/wiki/Non-cooperative_game_theory

https://youtu.be/xP_-pCrJd34

https://youtu.be/UkXI-zPcDIM

https://www.investopedia.com/terms/n/nash-
equilibrium.asp#:~:text=Nash%20equilibrium%20states%20that%20nothing,that%20other%20plays%20
have%20chosen.