WORKSHOP "STEAL OR SHARE"

Introduction:

The prisoner's dilemma is even a fundamental problem in game theory that shows that two people cannot cooperate if it is against the interests of both.





This is an example of a non-zero sum problem. Standard game-theoretic analysis techniques, for example determining the Nash equilibrium, may lead each player to choose to betray the other, but both players would have a better outcome if they collaborated.



In the iterated prisoner's dilemma, cooperation can be obtained as an equilibrium outcome. Here it is played repeatedly, so when the game is repeated, each player is offered the opportunity to punish the other player for non-cooperation in previous games.







So, the incentive to defraud may be overcome by the threat of punishment, leading to a cooperative outcome.  

Methodology:

In our case, we give the students 5 pencils and instruct them to write steal or share on two pieces of paper. After a short debate they make their choice public.

















If both share, they lose nothing and continue playing with another partner. If one person steals and the other shares, the one who has stolen takes two pencils from the partner. If they both steal, they give the teacher a pencil. If any student runs out of pencils, they can ask the teacher for a loan.


The result is that everyone goes bankrupt.



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