Payoff matrix
A payoff matrix is a construct in game theory which shows what outcome or "payoff" a player (or possibly two or more players) will receive, depending on the actions of that player, and any other player(s) or the state of the world.
2-player matrix for the Prisoner's dilemma:
Here, the payoff is one's sentence (time in jail) - lower is better.
| Cooperate | Defect | |
|---|---|---|
| Cooperate | 6 months, 6 months | 10 years, no time |
| Defect | no time, 10 years | 5 years, 5 years |
2-player matrix for the Game of Chicken:
Here, the higher the payoff, the better. "Cooperation" means swerving.
| Cooperate | Defect | |
|---|---|---|
| Cooperate | 0, 0 | -1, +1 |
| Defect | +1, -1 | -20, -20 |
External link
