The result is that both prisoners always confess because each individual realizes that confessing is most likely to reduce their sentence. Because they both confess, their sentence ends up five times longer than if they had both remained silent. As a result, they both lost. This behavioral model has a direct correlation in software development. In this case the two prisoners are management and individual team members.
Management is interested in getting the product to market as fast as possible.
The team members generally want to do a good job. If management treats the team with respect, rewards good performance, and makes the work environment generally pleasant, then they're cooperating with the team. When the team puts they're all into a project, they're cooperating with management. Management, encouraged by the speed with which the product went to market, wants it even faster next time. The team's reward might be a mention in a company meeting or a nice plaque.