Answer to Question #124746 in Microeconomics for Jabir Abdulhadi

Question

Consider the tit-for-tat strategy in the repeated prisoner’s dilemma. Suppose that one
player makes a mistake and defects when he meant to cooperate. If both players continue
to play tit for tat after that, what happens?

Answer 1

If one player makes a mistake and defects when he was meant to cooperate, and if both players continue to play tit for tat after that, both players will defect in each consecutive round. Thus, a new Nash Equilibrium will be reached:

(Player 1, Player 2) = (Defect, Defect)