Cheers! I think it’s interesting to consider what makes this situation fit the stag hunt vs. PD framework.
Like, say the situation is:
Alice and Bob can each put in $1 million. If they both do, they get a 50% chance of getting their money back, plus an extra $1 million (for a total of $2 million each), and a 50% chance of getting their money back with no bonus.
However, whoever puts their money in first is also at risk of the other person absconding with their $1 million, so that the second person has a 100% chance of getting $2 million total (instead of a 50% chance).
In this case, it is advantageous to Alice and Bob to have enough trust to make them willing to take the deal.
Cheers! I think it’s interesting to consider what makes this situation fit the stag hunt vs. PD framework.
Like, say the situation is:
Alice and Bob can each put in $1 million. If they both do, they get a 50% chance of getting their money back, plus an extra $1 million (for a total of $2 million each), and a 50% chance of getting their money back with no bonus.
However, whoever puts their money in first is also at risk of the other person absconding with their $1 million, so that the second person has a 100% chance of getting $2 million total (instead of a 50% chance).
In this case, it is advantageous to Alice and Bob to have enough trust to make them willing to take the deal.