Now for a classic of political analysis—the prisoner’s dilemma.
“Rational individuals select actions to achieve their most preferred outcomes. If two rational individuals can do better by acting collectively, then they will do so, because they are rational.”
Annnnh! Wrong! That is the rock pile method, and it’s false, and we can see this with the prisoner’s dilemma.
A lot of people teach the Prisoner’s Dilemma, and a lot of them get it wrong. “If you’ve heard of it or had a class that covered it, get a lobotomy to eliminate that part of the brain,” says Professor Dion.
I’ll get to some misconceptions in a moment, but first, here’s the story of the prisoner’s dilemma: two accomplices in a crime are taken in for questioning. The police have enough to convict the two on a small charge, but they want to get them on this bigger crime. The two criminals are separated, and each is offered a deal—rat on the other guy (“defect”) and you’ll get to walk free, and the other guy will get a really harsh sentence. They’re also told that this deal is being presented to both of them. What ends up happening? They both defect, of course. If they expect the other person to say nothing (to “cooperate”), it’s best to defect, because then they’ll walk free. And if they expect the other person to rat on them, it’s also best to defect, because while they’ll still get a harsh sentence, it won’t be as harsh, because it’s split between them.
So, here’s the Canonical prisoner’s dilemma, shown as a normal-form game.