IOSR Journal of Mathematics (IOSR-JM) e-ISSN: 2278-5728, p-ISSN: 2319-765X. Volume 15, Issue 2 Ser. III (Mar – Apr 2019), PP 29-39 www.iosrjournals.org DOI: 10.9790/5728-1502032939 www.iosrjournals.org 29 | Page Experimental Evidences from Prisoner’s Dilemma and One Shot Games in Duopoly Markets in Bangladesh L. C. Das*, J. Ferdous, S. Taher & W. Z. Loskor Lecturer, Department of Mathematics, University of Chittagong, Bangladesh Lecturer, Department of Mathematics, Premier University, Bangladesh Assistant Professor & Associate Professor, Department of Science and Humanities, Bangladesh Army International University of Science & Technology Corresponding Author: L. C. Das Abstract: In this paper, game theory is applied to the selling decision to establish that shopkeepers are locked in “prisoner’s dilemma” and one shot game over the decision. Individual rationality has pushed both shopkeepers in a duopoly market to adopt a dominating strategy, leading to several full-fledged and limited wars. However, collective rationality brings about peace as a Pareto-optimal solution under game theory. An attempt has also been made to show how two shopkeepers can mitigate their dilemma by using the strategies meant for mitigating the prisoner’s dilemma in game theory. Keywords: Duopoly, prisoner’s dilemma, one shot game, revenue, game value. --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 07-04-2019 Date of acceptance: 23-04-2019 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Self-serving, rational agents sometimes cooperate to their mutual benefit. However, when and why cooperation emerges is surprisingly hard to pin down. To address this question, scientists from diverse disciplines have used the Prisoner‟s Dilemma, a simple two-player game, as a model problem. A human cannot live alone without the help of others and has to make a relationship with people based on mutual cooperation. A human has contradictory aspects: cooperation and selfishness. It is a challenge to explain this contradiction of human cooperation, and many pioneers found some conditions that cooperation occurs [1-3]. Recently, evolutionary game theory has been used to explain how cooperation occurs [4, 5]. The evolutionary game theory has two major concepts. The first one is game. Among many kinds of games, it has been studied a lot and found that Prisoner‟s Dilemma (PD) game well expresses human selfishness [6-8]. The other major concept is the imitation process. In this paper, we also use the PD game. For nearly a century now game theory has influenced the way we think about the world. It has entered into the study almost every type of human interaction, including economics, political science, war games, and evolutionary biology. This is because, at its core, game theory seeks to explain how rational players should behave to best serve their own interests. II. Materials and methodology The tools being used to analyze the behavior of customers in rural shops (10 shops) mostly from game theory, a branch of applied mathematical economics which give formal mathematical models for the behavior of individuals in situations of conflicting interests [9]. For selecting the respondents, a convenience sampling technique was used in this study. In order to collect data, 10 shopkeepers from different villages were selected. The authors spent forty separate days to collect data from the selected shopkeepers. The models of game theory assume intelligent and rational decision makers. An intelligent decision maker is one that understands everything about the structure of the interaction, including the available information, assumptions, but also the fact that other decision makers are intelligent and rational. Rational decision makers always make decisions that are in their own best interest, which typically means maximizing an expected utility function. Game theory started out as a branch of economics, but its potential to model and analyze human behavior in a variety of situations was soon understood and it was applied in different rural shops [10]. Open questions are employed to open up for a conversation with the respondents (shopkeepers), to reveal their unique experiences of prisoner‟s dilemma and one shot game strategies taken by them.