Index Investing News
Thursday, April 2, 2026
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Prisoner’s Dilemma: A Current Application

by Index Investing News
October 22, 2023
in Economy
Reading Time: 2 mins read
A A
0
Home Economy
Share on FacebookShare on Twitter


We saw a good illustration of the paradigmatic Prisoner’s Dilemma (widely used in economics and other sciences) when Sidney Powell, one of Trump’s lawyers after his 2020 defeat, agreed on October 19 to a plea deal and recognized her guilt for some misdemeanors. She also had to promise to testify at the trials of her alleged accomplices. (“Sidney Powell Accepts Plea Deal in Trump’s Georgia Case,” Wall Street Journal, October 19, 2023.)

Remember that to demonstrate massive election fraud against Trump, Powell promised to “release the Kraken.” The Kraken never came, but the incentives imbedded in the Prisoner’s Dilemma eventually did.

The prisoner’s dilemma is a game-theoretic model in which each player’s optimal decision is to defect, that is, not cooperate with the other player(s), whatever the latter does—even if, for each of them individually, the best would be that they all cooperate. Defecting is said to be the “dominant strategy” of each player.

Consider a non-technical description of such a game. Two prisoners or criminal defendants are charged with a crime they committed together. If none of them plea-bargains and confesses, less evidence will be available to the prosecutor and they will be convicted of less serious offenses. But given the structure of a Prisoner’s Dilemma game, whether or not the other one plea-bargains, my best decision (for me Powell), is to defect. If, on the one hand, the other does not plea-bargain (he cooperates with me) but I confess our crime, I can dramatically reduce my own punishment and perhaps even be granted immunity for my testimony. If, on the other hand, the other one does plea-bargain first (he defects), I will be the sucker and get a worse sentence than in any of the other possibilities.

I know that the other defendant makes the same reasoning from his point of view, which further motivates me to plea-bargain before he yields to the same temptation. I prefer being the rat to the risk of being the sucker.

The day after Powell’s plea deal, lawyer Kenneth Chesebro, another one of the 19 defendants (including Donald Trump) charged with conspiring to subvert the 2020 presidential election in Georgia, rushed to confess a felony in return for a reduced sentence, again with the promise to testify (“Kenneth Chesebro Accepts Plea Deal in Trump Georgia Case,” Wall Street Journal, October 20, 2023). Preceding Powell, Scott Hall, a minor figure, plea-bargained and admitted his guilt to misdemeanors. The Prisoner’s Dilemma model explains why the dominos are falling. The ones against whom they fall are the principals in the alleged crimes like Rudolf Giuliani and ultimately Trump himself.

This analysis would be valid even if none of the defendants is actually guilty. In 16th-century France, an accused witch would often denounce other witches with the (usually vain) hope of escaping punishment. This suggests that the combination of plea bargaining and liberticidal laws like the supposedly anti-mafia RICO sort of law is an extremely dangerous power to grant to Leviathan. But this does not change the general fact that strong incentives push any individual involved in an illegal conspiracy to spill the beans. It also explains (as I wrote before) why vast conspiracies involving a large number of individuals who take great risks are unlikely.



Source link

Tags: Applicationcurrentdilemmaprisoners
ShareTweetShareShare
Previous Post

Here’s What These Celebrities’ Kids Think Of Their Parent’s Fame

Next Post

Comus Investment Q3 2023 Letter

Related Posts

Shutting Hormuz is a template for China in Taiwan

Shutting Hormuz is a template for China in Taiwan

by Index Investing News
April 1, 2026
0

Unlock the White House Watch newsletter for freeYour guide to what Trump’s second term means for Washington, business and the...

Ritholtz Wealth Management Is Coming to San Francisco!   

Ritholtz Wealth Management Is Coming to San Francisco!   

by Index Investing News
March 28, 2026
0

    Ritholtz Wealth Management is heading west. The week of April 16, 2026, our team will be in San...

The Match That Lit the Flame: Hannah Senesh and the Creation of Modern Israel (with Matti Friedman)

The Match That Lit the Flame: Hannah Senesh and the Creation of Modern Israel (with Matti Friedman)

by Index Investing News
March 24, 2026
0

0:37Intro. Russ Roberts: Today is January 18th, 2026, and my guest is journalist and author, Matti Friedman. This is Matti's...

At the Money: Billionaire Divorce Planning

At the Money: Billionaire Divorce Planning

by Index Investing News
March 20, 2026
0

    At the Money: Divorce Planning for the Ultra Wealthy (March 18, 2026) DESCRIPTION:   Divorce is difficult under the...

The Economics of Scarcity and the UNC-Duke Basketball Game (with Michael Munger)

The Economics of Scarcity and the UNC-Duke Basketball Game (with Michael Munger)

by Index Investing News
March 16, 2026
0

0:37Intro. Russ Roberts: Today is January 4th, 2026, and my guest today is Michael Munger. This is Mike's 51st appearance...

Next Post
Comus Investment Q3 2023 Letter

Comus Investment Q3 2023 Letter

Iran sentences 2 journalists for allegedly collaborating with US. Both covered Mahsa Amini’s death

Iran sentences 2 journalists for allegedly collaborating with US. Both covered Mahsa Amini's death

RECOMMENDED

Chainlink (LINK) Targets Rebound To  — However Solely If This Key Assist Holds

Chainlink (LINK) Targets Rebound To $19 — However Solely If This Key Assist Holds

April 6, 2025
Stocks moving big after hours: NVDA, SNOW, AEO

Stocks moving big after hours: NVDA, SNOW, AEO

May 24, 2023
Klarna doubles losses in first quarter as IPO stays on maintain

Klarna doubles losses in first quarter as IPO stays on maintain

May 19, 2025
Twitter reacts as Thibaut Courtois & Alisson exchange howlers in the Champions League

Twitter reacts as Thibaut Courtois & Alisson exchange howlers in the Champions League

February 21, 2023
What They Are & The best way to Discover Them

What They Are & The best way to Discover Them

May 1, 2022
BioLife Options Inc. (BLFS) Q2 2022 Earnings Name Transcript

BioLife Options Inc. (BLFS) Q2 2022 Earnings Name Transcript

August 10, 2022
Know-how upgrading by companies is generally steady

Know-how upgrading by companies is generally steady

July 19, 2022
Bitcoin Faces Crucial Resistance At ,000 As Brief-Time period Holders Hover At Break-Even

Bitcoin Faces Crucial Resistance At $91,000 As Brief-Time period Holders Hover At Break-Even

April 20, 2025
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In