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Game Theory — Prisoner’s Dilemma
Rationality, Cooperation, and the Strange Failure of Society Through the Prisoner’s Dilemma
We usually assume something simple:
If individuals behave intelligently, society as a whole should improve too.
But game theory suggests this is not always true.
In some situations, the more rationally everyone behaves, the worse the overall outcome becomes.
One of the most famous examples of this is the:
Prisoner’s Dilemma.
The Prisoner’s Dilemma is one of the most famous “toy games” in game theory. A toy game is a highly simplified model designed to capture the core structure of a complicated real-world situation. The Prisoner’s Dilemma became famous not because it is complex, but because it is disturbingly simple while still revealing uncomfortable truths about human behavior and society. Many people strongly disliked the conclusions of game theory and spent enormous effort trying to disprove them. That alone shows how psychologically uncomfortable this model can be.
The Story of the Prisoner’s Dilemma
The basic setup is simple.
Two people, Adam and Eve, are arrested for a crime. The prosecutor believes they are guilty of a major offense, but…
