Thursday, November 1, 2007

prisoner's dilemma

Prisoner's dilemma is of some high importance in Economics

Check out how it interacts with the increasing problem of climate change.

Note also how the notion of 'free rider' effect may set in, in cases other than economics, like this one regarding climate...

Click here!

1 comment:

constantine ziogas said...

Thanks so much dearest!

Quoting from the article:

"The paper cites a study on the subject by an American academic, Robert Axelrod, which argues that the most successful strategy when the game is repeated has three elements: first, players should start out by co-operating; second, they should deter betrayals by punishing the transgressor in the next round; and third, they should not bear grudges but instead should start co-operating with treacherous players again after meting out the appropriate punishment. The result of this strategy can be sustained co-operation rather than a cycle of recrimination."

The BEST (and, most interesting) introduction to the ideas of game theory can be found in Selfish Gene, the classic by Richard Dawkins. His Chapter 12 'Nice Guys Finish Last' is superb. In it, Axelrods work is clearly explained.

(The Evolution of Cooperation, Axelrod R., 1984, New York: Basic Books)

Get the Dawkins book! (popular science on evolutionary thought - a must book IMHO)