Prisoners Dilemma
Why, in all situations that share this structure, does rational pursuit of one's interests lead to sub-optimal results?
The best outcome for each person is to Defect when the other Cooperates. The worst outcome for each is to Cooperate when the other Defects. We are highly likely to perform the same action. Mutual Cooperation is better than mutual Defection. For each person the rational action is to Defect even though that leads to a sub-optimal outcome. The mutually optimal outcome is the outcome in which it is impossible for anyone to do better without someone doing worse.
Why is the Prisoner's Dilemma a case in which rational pursuit of one's interests lead to sub-optimal results?
Staying silent could suit your self-interest, but could also lead to the worst possible outcome (10 yrs)
Explain what the rational action in a single instance Prisoner's Dilemma is according to the Restricted Dominance Principle and Restricted MEU.
Dom: rational action is to confess because of the possibility of getting 0 yrs. MEU: rational action is to confess because you would assume that the probability doesn't matter, which gives confessing the higher utility
Describe the general structure shared by both the Prisoner's Dilemma and Newcomb's Paradox.
It is highly likely the participants' actions will match even though their actions don't causally affect each other. There is an action X which is such that everyone is better off if they converge on X. It is rational for each participant to perform an action other than X. The best outcome for each person is to Defect when the other Cooperates. The worst outcome for each is to Cooperate when the other Defects. We are highly likely to perform the same action. Mutual Cooperation is better than mutual Defection.
Explain why people rationally pursuing their interests are likely to achieve the mutually optimal outcome in a multiple Prisoner's Dilemma.
Knowing that the other will remember and learn, if both defect or cooperate, etc, then both can make a decision "together" for a mutually optimal outcome
What are two ways of avoiding sub-optimal results in (a single instance) Prisoner's Dilemma?
Rational to take steps to act irrationally if everyone does. (Take a drug that would block me from confessing provided you also take it. Would allow us to achieve the mutually optimal outcome of both staying silent) Punish confessing/defecting (Say you and I are members of a gang that kills anyone who confesses.)
Describe the Prisoner's Dilemma.
There are 2 prisoners. If 1 confesses and the other is silent, a gets 0 years b gets 10. If both confess, a and b get 5 each. If both are silent, both get 1yr.
Explain what the rational strategy to follow is in a multiple Prisoner's Dilemma and what is meant by "the mutually optimal outcome."
rational to pick option that leads to best outcome for both
What is a multiple Prisoner's Dilemma?
suppose that there are a series of choices, and that we each know this in particular, we each know that this is not the last time we shall be playing the game with each other - and that we also know that the other will remember, and no doubt be guided by, what has happened on previous occasions.
