Axelrod's Prisoner's Dilemma

Axelrod’s Prisoner’s Dilemma illustrates a situation where two individuals must choose to cooperate or defect without knowing the other's decision. If both cooperate, they benefit moderately; if both defect, they face worse outcomes. If one defects while the other cooperates, the defector gains the most, while the cooperator is disadvantaged. The dilemma highlights how mutual distrust can lead to suboptimal results, but strategies like "tit-for-tat"—mirroring the opponent’s previous move—can promote cooperation over time, demonstrating how trust and reciprocal behavior can improve collective outcomes in competitive settings.