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Prisoner’s Dilemma
“Two people gain by cooperating, but each gets an immediate advantage by defecting. What would you choose without talking?”
01 / SUMMARY
In short
It is an incentive structure in which individually dominant choices can produce a worse outcome for both parties. Repetition, reputation, communication, and institutions can change the prospects for cooperation.
02 / SEQUENCE
What happens
- 01
Each player compares cooperation and defection without controlling the other choice.
- 02
Defection protects against exploitation and offers an immediate individual gain.
- 03
If both follow that incentive, they end up worse than under mutual cooperation.
03 / SCENE
In the wild
Two firms could cut pollution and benefit society; if each fears bearing the cost alone, both may defect and worsen the environment.
04 / LIMIT
The limit
It does not prove that humans are inevitably selfish or that cooperation is always irrational.
FINAL NOTE
What remains
Changing the game often beats demanding heroism: create reputation, repetition, communication, or verifiable guarantees.
CHECK / 01
Put it to work
How firm is your read?