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Game Theory models strategic situations and doesn't offer insight outside what is modeled. If you think there should be communication supporting cooperation in the game, that game is NOT the Prisoners Dilemma and is in fact another game.
The Prisoners Dilemma is a model that is stacked very much against cooperation. Think about it, the prisoners are held in separate rooms and not allowed to communicate at all in the original story.
I suggest reading Andy Clark's Mindware for a critical view of various approaches to this problem.
As clichéd as the Innovator's Dilemma is now, I find very few folks who have actually read it and processed all the strategies, and case studies in the book.
Spinning off a wholly independent entity that can compete at the new price level/market is Christensen's recommended approach. It's all in the book.
I was hired at the end of the dot-com bubble into a technology mega-corporation at the age I should have just finished college. I dropped out of state after studying German and whatever to make money in the technology boom, and I did. Lots. For many years my career grew and I was at zero disadvantage to someone entering with a degree. In the bust, I was even at an advantage for awhile as I had key experience over anyone competing with me.
Over time however it became evident the long term growth curve of my career had a lower slope than my college educated colleges. Soon enough I couldn't move up any more. In a deep, sit-down conversation with a respected manager I was told I would never make senior grade engineer without the degree.
Now in a start-up or small shop maybe this wouldn't matter. In a Fortune 500 corp. it simply did.
Now I'm in my 30's and back in school. At least I'm enjoying it this time :)
The original iPhone was nothing new component-wise but something wonderful is summation. This has been Apple's gift. Lots of folks can dream up and write a paper about super-phone, it's a top-notch engineering company, living in the real world of engineering trade-offs, that can actually build and sell millions.
The day my family receives a life insurance style settlement for my death I will consider it. But not if you cut my people out of the deal.
However I grew up traveling to Powells books and living with physical books. I find that a good physical book has something that the digital version lacks. The physical form is a symbol for my memories of a book. I can simply pick it up and thoughts, themes and so forth come back to me. A quick flip through pulls out my memories.
For deep study I still find that writing in ad underlining a book increases my understanding dramatically. For awhile I composed notes at the computer while I read but this was time consuming and akward.
Digital books are disruptive. As Carr once wrote though, the disruption doesn't mean something isn't lost... often much is. We need to find the right ways to bring as much as that along with us from the physical world into the digital as we can. Perhaps I am too old already, but I am sure I will be one of the last with physical books as well as a continual user of the digital.
If you don't understand how markets better allocate resources than top down rationing systems I suggest you go take economics at the nearest community college.
One of the concepts in the micro-economics principles class you will learn is that education has positive external benefits (beyond the market). In other words there is a marginal social benefit to education that exceeds the market demand. The best way to address this is not to have public school system monopolies of supply and take the cost to near zero - a much more efficient mechanism is to harness (superior) market resource allocation through demand subsidies.
If Intel could move down market successfully don't you think we would have seen a reasonable IA facsimile of an iPhone or an iPad after all these years?
Soon everyone on earth, except perhaps the bottom billion poorest, with have Internet access via ARM and Intel will peak at the top 2-3 billion. That's what scares the hell out of them.
ARM,as a mobile optimized architecture, will never compete on performance grounds with IA. IA is the push rod V8 of computing and ARM is the hybrid.