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Talk:Economics

656 bytes added, 17:51, April 18, 2007
/* Questions for Midterm Exam */
:Daniel - I just reviewed the lecture that discussed the prisoner's dilemma. Based on the potential sentences that could be distributed in the example you have been provided, I share your concern. I found a great example of this piece of game theory on the web, which you might want to take a look at here: [http://www.princeton.edu/~mdaniels/PD/PD.html] Ultimately, the purpose of the game is to show that all actors are self-interested, and will look for an individually beneficial outcome as opposed to a mutually beneficial outcome. Think of it as an exercise as how utilitarianism doesn't always work in practice. Hope this helps. --[[User:Thammersmith|Thammersmith]] 13:44, 18 April 2007 (EDT)
 
:This is how I think it should be laid out. If both prisoners confess, they get 4 years each. If both do not confess, they are pinned with a smaller crime and each get 2 years. If A confesses, and B does not, the police give A a deal and he becomes a snitch, pinning the crime on B. In that scenario, A gets 1 year and B gets 5. This creates an individual motive for A to confess, although the most mutually beneficial action is for both actors to confess. Therefore - if A confesses, he either gets 4 years or 1. If A does not confess, he either gets 2 years or 5. Does this help? --[[User:Thammersmith|Thammersmith]] 13:51, 18 April 2007 (EDT)
== Questions on Week 8 Homework ==
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