How Do You Play Iterated Prisoner's Dilemma?

The iterated prisoner's dilemma is a game theory exercise that tests the rational decision making process of two parties that have incentive to oppose each other. The prisoner's dilemma is not just an extremely simple yet interesting game but also a fascinating look into human motivation. Set up a scenario with two players who are both told that they're accused of a crime by a hypothetical policeman.

Make rules that stipulate that turning in your fellow conspirator (who's being interrogated in a different room) gets you off scott-free, if he doesn't turn you in. If neither you nor your co-conspirator accuses the other then you both still get in trouble, just not with a full conviction. If you both identify each other then you get in worse trouble still.

But getting identified by your co-conspirator when you don't identify him gets you a full conviction, which is a total loss. Assign points to each of the possible outcomes of your "interrogation." For example, if you accuse your co- ... more.

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