Real Life Prisoners Dilemma with $100k at Stake [vid]
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When watching this the first time the facial expression at 2:29 clearly gives away the outcome. The pinched lips is a classic poker tell for discomfort in honesty. While in a poker game an experienced player can hide or mix in false tells, this completely jumped out at me.
Interesting to see it (or something close enough) in action.
(This all obviously assumes that your utility is equivalent to the amount of money. It might not be. You might value not coming across as an asshole pretty high.)
P.S. Please don't spoil it for those who haven't seen it yet.
When I first read about the Prisoner's Dilemma in a Douglas Hofstadter book (probably Godel, Escher and Bach although I'm not sure) I went around reading everything I could about it as I felt it was saying something important about society. Today I'm not entirely sure that's the case but it still fascinates me...
I believe that you should always call "steal". On average (assuming you don't know what the other person will choose) you get more money (1.0 if you steal versus 0.5 if you split) and you can never be betrayed.
More than that: each player decides whether the other player takes any money or not. However since the players decisions are independent it doesn't make sense to say 'split'.
This game really illustrates the importance of repeated games and quid pro quo in human relationships. What makes human society function is that we can actually create binding contracts, and that we increase trust with people over time, on the basis of mutual give and take.
But only if your utility (roughly) corresponds to the money involved. The sums of money might just be big enough for that to be (roughly) true.
If they steal, you are best off stealing.