Friday, June 16, 2006

Prisoner's Dilemma

Dear Dr Thomas

Is this correct?:

The Prisoners dilemma is when he is separated from his partner in crime and the cops tell him that if he makes a statement against the other guy he will be granted immunity.

He can bet the other prisoner will deny and he both deny and they both go free or he can bet the other prisoner will dob him in and therefore he should dob him in first.

Crackers

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Dear Crackers

The prisoner's dilemma has the same incentive structure as:

1. Deciding whether to renege on a promise, in absence of a legal system to enforce a contract (you can bet the other guy won't deliver the goods, and he can bet you won't pay him, but you'd both be better off if you kept your promises).

2. Deciding whether to spend money on defense (you can bet the other country will spend money on nukes, and they can bet you will too, but you'd both be better off if you spent your money on education and health).

3. Deciding whether or not to pollute the river with toxic chemicals in the absence of environmental protection laws (you can bet the guys in the other factory will -and make cheaper goods, and they can bet you will too, but you'd both be better off if you didn't because you all drink the water and eat the fish from the river).

4. Deciding whether to be a peaceful citizen or a violent thieving criminal in the absence of a police force (you can bet the rowdies next door will find it more convenient to nick stuff from you than produce it themselves, and they can bet you will too, but you'd both be better off if you just all respected property rights).

5. Deciding whether to eat orange roughy in absence of international fishing quota regulations (you can bet the other diners will, and they can bet you will too, but you'd both be better off if you ate the fish less, because then they would last for longer).

6. Ditto for overuse of non-renewable or limited resources (fossil fuels, water).

7. Deciding whether to pull your weight in a communist society (you can bet the lazy bugger next door will shirk, and he can bet you will too, but you'd both be better off if you put in a proper effort).

8. Deciding whether to have an informed vote in a democratic society (no-one else can be bothered becoming informed so your informed vote is going to be drowned out, why bother, but everyone would be better off if everyone were informed).

9. Deciding whether to attend meetings in a communal society...

10. Deciding whether to behave ethically...

...fill in your own examples...

Dr Thomas