A history of the Prisoner’s Dilemma

The Prisoner’s Dilemma–or is it Prisoners’ Dilemma?–is not only one of the most famous models in game theory; it has also been described as a “compelling drama,” as “the most famous game of strategy in all of social science,” and even as “one of the greatest ideas of the twentieth century.” Ever wondered who invented the Prisoner’s Dilemma, and why? Read my work in progress The Parable of the Prisoners to find out.

As an aside, prior probability will be presenting an abridged version of “The Parable of the Prisoners” at the University of Puerto Rico next Saturday. More details to follow soon …

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Is there a fairness instinct or a gene for fairness?

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Bad bet?

Did the L.A. Lakers just make a really bad bet? A few days ago, the Lakers and Kobe Bryant agreed to a two-year, $48.5 million contract extension. This is no doubt a great deal for the Black Mamba, but is #24, who is well past his prime, really worth so much money at this stage of his pro career? Or is this multi-million dollar contract more about Kobe’s name recognition, star power, and ability to attract fans, not his future athletic prowess or ability to win championships?

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Are babies Bayesians?

Are babies Bayesians?

At its core, Bayes’ theorem is not just a mathematical equation, a formal method for making predictions; it is also a probabilistic and dynamic way of looking at the world. The essence of this approach is the process of Bayesian updating–simply put, the ability to update one’s priors about how the world works whenever one receives new evidence.

Babies and small children are thus Bayesian creatures in many ways. Take for, example, the latest addition to prior probability‘s family, Baby Adys Ann. It would be safe to say that she had no priors or dogmas about the world when she was born on 6 August (Jamaica Independence Day). But over the first few months of her life, might she be developing a set of priors about her little world, such as the causal relation between her squeals of hunger and breast milk? For example, she likes to make a small fuss whenever she is hungry (and for other reasons as well), and each time she begins to fuss, someone who loves her will immediately attend to her needs. Her mother, for example, will nurse her at regular intervals, especially when Baby Adys begins to send out the appropriate signals. So doesn’t Baby Adys, then, update her priors in the sense that she expects, with a high degree of probability, to be nursed whenever she is hungry?

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Why Exams Should be Open Book

As students across the nation approach their reading periods and final exams, prior probability is reblogging this chestnut of a post …  By the way, out of curiousity, what are your priors on this question (should exams be open book?), and how have you updated your priors given your previous test-taking experiences?

jeff's avatarCheap Talk

Writing and studying for an exam is a game played between Professor and student.  In this game the Professor has to pick which questions to ask and the student has to pick which topics to study.  The game has the flavor of rock-scissors-paper in that the Professor would like to be unpredictable.  That way the students will have to devote studying time to all topics rather than focus on just one that they know the Professor will ask about.

But the Professor might not want the students to spend too much time memorizing concepts from the book.  Instead he may want them to spend their time thinking about how to apply those concepts to new problems.  How can the Professor be unpredictable and still deter the students from trying to memorize the book?  The solution is to use an open book exam.  This way the Professor is committing not to…

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How bad is Yahoo Mail?

According the website AllThingsD, executives at Yahoo! recently sent out this nasty and morale-shrinking email taking their underlings to task for not using their own company’s email service “Yahoo! Mail.” According to the internal email, “it’s a matter of principle to use the products we make”; yet the vast majority of Yahoo employees (75% according to the email) still don’t use their company’s crappy and outdated email service. As Sam Biddle, who blogs for the website Valleywag, explains, “That’s pretty poor, but entirely unsurprising, given that it’s 2013, and no one uses Yahoo! Mail unless they’ve lost a bet.” So, on a scale of 1 to 10, how would you rate Yahoo Mail (with 1 being AOL and 10 being Gmail)?

More importantly, if you were an executive at Yahoo, what incentives would you put in place to encourage your team of engineers to build a better email service, one that your employees would actually want to use?

Hat tip: Sam Biddle

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The law and economics of Star Trek

Several “Star Trek scholars”–including Matthew Yglesias, Rick Webb, and Joshua Gans–have recently speculated about the economics of Star Trek. How does the economy (and legal system, we would add) work in the world of Star Trek? Does the United Federation of Planets have a socialist system, a market economy, or some other hybrid model? Also, what law applies to interplanetary disputes within the federation? Does each planet have its own legal system, or is there a uniform legal code for the entire federation?

Double hat tip: Tyler Cowen, Joshua Gans

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What’s up with Jay Z?

prior probability is a big fan of Jay Z, but his recent mishaps are causing us to update our “Jayzian” priors.  For example, we were disappointed when Jay Z visited socialist Cuba last spring but did not use this opportunity to speak “truth to power” (*) by criticizing the lack of artistic freedoms and property rights on the Island. (Had he been born in Cuba, it is doubtful whether the Cuban government would have allowed him to pursue his musical career and other business interests.)  More recently, he has also refused to sever his ties with Barneys New York, despite several well-publicized incidents of racial profiling by the store’s employees. In both cases, is Jay Z simply following the path of least resistance, or there some deeper method to his “badness”?

(*) By the way, the same can be said of former President Jimmy Carter and the late, great pope John Paul II, both of whom offered bland and pusillanimous self-censored remarks (i.e. no direct criticisms of Cuba’s tropical dictatorship) during their respective visits to the Island many years ago.

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“So what really happened that day …?”

Is the lone gunman theory more or less probable than Oliver Stone’s conspiracy theory?

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The strategy of “nettlesomeness”

A few days ago, Tyler Cowen, an economist at George Mason University, used the word nettlesomeness to describe Magnus Carlsen‘s chess-playing strategy during the first half of the 2013 World Chess Championship in Chennai, India between Viswanathan Anand (winner of the 2012 World Championship) and Carlsen. Here is an excerpt from Professor Cowen’s thought-provoking blog post:

I find two aspects of the [Carlsen-Anand] match notable so far.  First, in the last two endgames Carlsen has been outplaying the computer programs (and Anand), sometimes for dozens of moves in a row. * * * Second, Carlsen is demonstrating one of his most feared qualities, namely his “nettlesomeness,” to use a term coined for this purpose by Ken Regan.  Using computer analysis, you can measure which players do the most to cause their opponents to make mistakes.  Carlsen has the highest nettlesomeness score by this metric, because his creative moves pressure the other player and open up a lot of room for mistakes.  In contrast, a player such as Kramnik plays a high percentage of very accurate moves, and of course he is very strong, but those moves are in some way calmer and they are less likely to induce mistakes in response.

Can you think of other non-chess situations where “nettlesomeness” is used to frustrate or confuse an opponent?

Viswanathan Anand
Magnus Carlsen
Viswanathan Anand (IND) Magnus Carlsen (NOR)
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