One-Shot vs. Iterated Prisoner's Dilemma
This post by Aleatha Parker-Wood is very applicable to the things I wrote in Liars & Outliers:
A lot of fundamental social problems can be modeled as a disconnection between people who believe (correctly or incorrectly) that they are playing a non-iterated game (in the game theory sense of the word), and people who believe that (correctly or incorrectly) that they are playing an iterated game.
For instance, mechanisms such as reputation mechanisms, ostracism, shaming, etc., are all predicated on the idea that the person you're shaming will reappear and have further interactions with the group. Legal punishment is only useful if you can catch the person, and if the cost of the punishment is more than the benefit of the crime.
If it is possible to act as if the game you are playing is a one-shot game (for instance, you have a very large population to hide in, you don't need to ever interact with people again, or you can be anonymous), your optimal strategies are going to be different than if you will have to play the game many times, and live with the legal or social consequences of your actions. If you can make enough money as CEO to retire immediately, you may choose to do so, even if you're so terrible at running the company that no one will ever hire you again.
Social cohesion can be thought of as a manifestation of how "iterated" people feel their interactions are, how likely they are to interact with the same people again and again and have to deal with long term consequences of locally optimal choices, or whether they feel they can "opt out" of consequences of interacting with some set of people in a poor way.
Posted on May 23, 2013 at 9:18 AM • 25 Comments