January 24

January 24 - January 24, 2007 Poli 100 Section 6 Notes What...

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January 24, 2007 Poli 100 Section 6 Notes What does the Prisoner’s Dilemma game teach us? Individual pursuit of self-interest CAN lead to worst outcome for the group. In many social choice situations, what happens to you depends upon the choices made by others. There is a better social outcome, but it requires cooperation/coordination to achieve it. Two Common Prisoner’s Dilemma (PD) Situations 1. Free Rider Problem Every one would benefit, but no individual contribution by itself matters, so why pay the costs if you can still get the benefits? Example: Building a lighthouse-Every boat company would benefit from paying a fee to have the lighthouse built. However, one boat company would think that there individual contribution wouldn’t make a difference, so they don’t pay. Now imagine that several boat companies have that attitude. Results in failure to provide a collective good (Lighthouse doesn’t get built). 2.
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January 24 - January 24, 2007 Poli 100 Section 6 Notes What...

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