Binmore, "Getting Locked In" Flashcards
What is Game Theory?
The orthodox game theory to which this book is devoted is mostly about what happens when people interact in a rational manner
What behaviour has Game Theory had notable success explaining and why?
The behaviours of insects and plants, mainly because these entities are not conscious of making decisions; they are pre-programmed to behave a certain way in order to remain rational and survive
What do game theorists aim to avoid doing?
Being misled by wishful thinking, instead remaining focused on rational thinking and logic
Summarise the Prisoners’ Dilemma
“If you confess and your accomplice fails to confess, then you go free.If you fail to confess, but your accomplice confesses, then you will be convicted and sentences to the maximum term in jail. If you both confess, then you will both be convicted, but the maximum sentence will not be imposed. If neither confesses, you will both be framed on a minor tax evasion charge for which a conviction is certain”
What are the two strategies players of the Prisoners’ Dilemma can follow, according to game theorists?
The Hawk strategy; fink on your accomplice by confessing to the crime
The Dove strategy; stick by your accomplice by holding out against a confession
Why do critics suggest players in the Prisoners’ Dilemma should always play dove, whereas game theorists suggest hawk?
Naive critics allow their emotions to over-ride reason; they don’t like the conclusion to which one is led by game theory and so they propose an alternative with nothing more to recommend it then that it leads to a conclusion they prefer
Summarise the Twins Fallacy
Two rational people facing the same concern will come to the same conclusion. Adam should therefore process on the assumption that Eve will make the same choice as he. They will therefore either both go to jail for nine years, or they will both go to jail for one year. Since the latter is preferable, Adam should pick dove. Since Eve is his twin, she will reason in the same way and choose dove as well
What is the main flaw of the Twins Fallacy?
While it would be relevant to certain situations, this style of problem-solving would no longer be the applicable to the Prisoner’s Dilemma; a game which is strictly played by two separate players and their individual rationalities
Summarise the Free Rider Problem
This is the concept of one of two players paying a price, for the benefit of them both, while the other player pays nothing but is inherently benefited. Here, one player pays a price for a benefit, whereas the other gets it for free at the disadvantage of the other player
