 The reader will probably have noticed something disturbing about the outcome of the PD. Had both players refused to confess, they’d have arrived at the lower-right outcome in which they each go to prison for only 2 years, thereby both earning higher utility than either receives when both confess. This is the most important fact about the PD, and its significance for game theory is quite general. We’ll therefore return to it below when we discuss equilibrium concepts in game theory. For now, however, let us stay with our use of this particular game to illustrate the difference between strategic and extensive forms.