Self-Interest in Prisoner Dilemma

The Prisoner's Dilemma is a paradox in decision-making where two individuals acting in their own self-interest fail to achieve the optimal outcome. If both cooperate, they would receive minimal punishment. However, since each fears the other might betray them, both end up betraying and receive harsher penalties. For example, without knowing what your opponent is going to do, the best option is always to rat them out. If they stay quiet and you rat them out, you go free. If they rat you out and you rat them out, you both go to prison for a reduced sentence. But the same applies for your opponent. They don't know what you're going to do, so their best option is to rat you out. So the two individuals, making the smartest decision they can, both end up in prison.

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