Prisoner's Dilemma and Invisible Hand

In the Prisoner's Dilemma, the freedom of both prisoners is impossible, and the continued pursuit by each of their own freedom leads to the maximum punishment for both. Thus, the example is usually interpreted as a lesson in the value of trustful compromise, applicable to hostile encounters, e. g. arms reduction negotiations. However, its relevance is much more general--to any market exchange. For, the maximum profit for each party in an exchange is gain without any loss, the unyielding pursuit of which by both will lead to an impasse, and, hence, to a failure of each to acquire what might be vital goods. So, the scenario exposes a significant shortcoming in Smith's system--the gloss over the value of trustful compromise, via the Invisible Hand-guided 'Law' of Supply and Demand that preserves the efficacy of Selfishness.