Index Investing News
Monday, October 6, 2025
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

A weak greenback is dividing firms’ earnings

A weak greenback is dividing firms’ earnings

by Index Investing News
October 3, 2025
0

This text is an on-site model of our FirstFT e-newsletter. Subscribers can signal as much as our Asia, Europe/Africa or...

Indifferent from Actuality? (No) – The Huge Image

Indifferent from Actuality? (No) – The Huge Image

by Index Investing News
September 24, 2025
0

  A fast observe about some damaging chatter that retains displaying up in varied locations. Over the previous few weeks,...

AI Gained’t Kill Work – It Will Reinvent It

AI Gained’t Kill Work – It Will Reinvent It

by Index Investing News
September 20, 2025
0

It’s simple to doomscroll lately. AI, it seems, is coming for our jobs. Even occupations that had been beforehand thought-about...

RWM Makes Barron’s High 100 RIA Corporations!

RWM Makes Barron’s High 100 RIA Corporations!

by Index Investing News
September 16, 2025
0

    I'm thrilled that Ritholtz Wealth Administration has been acknowledged by Barron’s as one of many prime 100 RIAs...

Rethinking Triffin: The Fiscal Dimension of the Greenback Dilemma

Rethinking Triffin: The Fiscal Dimension of the Greenback Dilemma

by Index Investing News
September 12, 2025
0

The controversy over Robert Triffin’s well-known “dilemma” continues to animate policymakers and commentators. Stephen Miran, a number one financial advisor...

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

Panopto bids to purchase Israeli video co Kaltura for 3m

Panopto bids to purchase Israeli video co Kaltura for $383m

July 29, 2022
Trump’s trade-offs

Trump’s trade-offs

January 21, 2025
Immutable And Portal Be a part of Arms To Carry NFT Video games To The Lots

Immutable And Portal Be a part of Arms To Carry NFT Video games To The Lots

September 4, 2024
Tesla Converts 75% of Bitcoin Wager Again to Fiat Foreign money : shares

Tesla Converts 75% of Bitcoin Wager Again to Fiat Foreign money : shares

July 20, 2022
Bitcoin (BTC) Value Provides Up Features as U.S. Election Nervousness Unleashes Crypto Volatility; Aptos, Close to, Hedera Outperform

Bitcoin (BTC) Value Provides Up Features as U.S. Election Nervousness Unleashes Crypto Volatility; Aptos, Close to, Hedera Outperform

November 6, 2024
How Travis Kelce Brought Taylor Swift To Jason’s NFL Retirement Announcement!

How Travis Kelce Brought Taylor Swift To Jason’s NFL Retirement Announcement!

March 5, 2024
Bitcoin Mining Agency Ionic Faces Potential Liquidation By Celsius Collectors

Bitcoin Mining Agency Ionic Faces Potential Liquidation By Celsius Collectors

August 28, 2024
Bitcoin NUPL Suggests Bear Market But To Hit In Full Swing

Bitcoin NUPL Suggests Bear Market But To Hit In Full Swing

March 21, 2022
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