Guest Post: Game Theory And The Unfixable Fiscal Situation
January 2, 2013 - 1:49pm
Via Simon Black of SovereignMan blog, In Game Theory, there's a famous hypothetical scenario called the Prisoner's Dilemma in which two criminal suspects are apprehended by police and given a choice: stay silent, or rat out the other guy. But there is a catch. If both suspects stay silent, they both get off with a very light sentence. If they both turn on each other, they both get a longer sentence. And if only one of them rats out the other, the suspect who squeals goes free, while the one who stayed silent receives the worst sentence. Naturally, the best choice is for both prisoners to stay silent-- they both get off with a very light sentence. But imagine that your accomplice is in there being interrogated. You know that he's been offered the same deal... if he rats you out, he'll go free while you take the heat. When it's your turn, would you stay silent and risk a huge priso...
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