Melvin Dresher and Merrill Flood of the Rand Corporation first introduced the mental model called prisoner’s dilemma in 1950, which has since been recognized as one of the most famous game theories. Prisoner’s dilemma essentially provides a framework to understand how to achieve a balance between two seemingly opposing forces – competition and cooperation. The concept is now used as an effective tool for making strategic decisions in the field of politics, economics, sociology, business, and finance. How does it Work? Prisoner’s dilemma game theory is about two criminal gang members (which are widespread in Chicago, LA, Baltimore, and so on)