Because the players are prevented from cooperating, the dominant strategy leaves them both worse off than if they could cooperate.
In the prisoners dilemma, both of the players are separated from each other. There is usually no communication. They must have to make a choice on if to cooperate or not on their own.
The two choices that they usually have is either to cooperate or for them to defect. By defecting, a player would be wanting to maximize her options. But when they both cooperate, they both win.
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