Real-World Application: Jerk Detection
This is where we see game theory's primary use: identifying total sociopaths. Real game theory is a powerful analytical tool, but amateur game theory is often a red flag planted in an asshole. People who value arithmetic over empathy say you're better as a rat because it leads to a shorter prison term no matter what the other player does. Technically true, if you're a short-sighted asshole who values numbers over human lives. Which is why game theory is so popular in finance. You couldn't be more of a jerk without a red shell.
The real problem with the prisoner's dilemma is that it ignores data. Like how you might not be a psychotic asshole who'd throw someone under the bus the moment a matrix told you to. Or how you'll go free only to be stabbed by your partner's angry friends, family, or some random thug he just promised your half of the money to because he won't see it for 10 years.
"We, uh, weren't very good at robbing the bank, either."
Worst of all, everyone in the prisoner's dilemma suffers from Zombie Movie Syndrome: they act like they've never heard of the prisoner's dilemma. The best move is to keep silent, then enjoy the money with a much closer friend after two years of anticipating the sweetest daiquiris of all time.
The daiquiri dilemma is "Should I have another daiquiri?" versus "Why don't I already have another daiquiri?"