Part one of term paper
(I). In the prisoner’s dilemma two people have been arrested, the one inmate is called Smith. In this situation the authorities are not interested in the truth but only want to convict someone. An interrogator lays out the consequences for Smith. If Smith does not confess but the other guy confesses against Smith, they will release him ...

Part two of term paper
... the other man are being offered the same deal. One might assume that each man would confess against each other. In this case both men would receive five years and not obtain the minimum possible time spent in jail. If each man looked out for him self both will end up worse off than if they had acted in a more benevolent manner. This is what makes the prisoner’s dilemma such a paradoxical situation. Both men will be better of if they look out for each other or rather not look out for themselve ...