QUOTE (Apathy @ Jun 11 2009, 09:43 PM)

But what if the stakes of the game are more significant, like in the
prisoner's dilemma?
If you allow yourself to get into the situation of the Prisoner's Dilemma, then you've already made a sequence of judgement errors (and I'm not talking about being guilty as that's not a pre-requisite in an unjust society, I'm talking about getting caught).
However, the problem with the prisoner's dilemma is that it is
necessarily a hypothetical scenario. It has to be abstract and without context in order to be analysed as a pure exercise in game theory. And as an abstract mathematical problem I can give an abstract mathematical answer which is that in a one-instance game, defection is the better strategy for harm-minimisation and in an iterative game, co-operation is the better strategy. But even that single-instance game has assumptions built in - that a sure low average punishment is better than risking a probably greater punishment in the hope of minimal punishment. That's likely not true to most people if they were thinking this through for real. Five years is enough to devastate your life and probably saving yourself another five years is not enough to balance the chance that you might only get six months.
The moment we move from the abstract, it all falls apart. What do I know of Blade? Is he the sort of person that would turn on me to save his skin? Has he always hated the police with a passion and would rather die than betray an Internet friend to them? What does he know of me and would he trust me not to betray him, thus influencing his behaviour? And when will my father's lawyer arrive to get me out of there?

For the record, I'd probably go pretty high before I seriously considered altering my behaviour in the £50 quid experiment. What if it were £500 and he tried to keep £400 of it himself? Nah - I'd still refuse him it on principle. £5,000? Well, I'd give it more thought, but it would depend on my mood. Sometimes I get very obstinate. I could see myself refusing £1k because the other person was being greedy. By this point though, I'd also be questioning who was willing to pay so much money to try and mess with my principles.

But principles is the wrong word. If it were a principle , e.g. cheat on a partner, eat food that I have forbidden myself to eat, then I'm not going to break those for money. Demanding fifty:fifty in the above isn't a principle, it's just the inclusion of profits / losses that the constructor of the experiment neglected to consider. At some point, I may decide that I'll take the £100,000 even though greedy Blade gets £900,000 because £100,000 is worth more than the likely benefit of future working with Blade. You'd probably have to go quite a bit higher than you'd normally expect with me though. I'm not hugely materialistic (though more than I should be) and I can also be very stubborn in the face of inequality. If it's a likely to be repeated experiment, there's a good chance I'll take the hit of losing the initial sum just to teach my partner to respect me and treat me equally. After all, the higher the money, the less reason he has to demand a greater share.*
K.
* Someone is going to query the logic of this last sentence. It
is incorrect if you assume that money has a non-diminishing value, that more money is more good. But the logic is correct if, as I do, you consider money to be a need that can be fulfilled once you have enough that you're not suffering for a lack of it. After all, you don't say "I've eaten enough now, but more food would be better."