On the topic of “utilities in the prisoner dilemma coinciding with jailtime” I quote one of my guest blog posts: http://phd.kt.pri.ee/2009/01/27/the-real-prisoner-dilemma/
Two hardened criminals are taken to interrogation in separate cells.
They are offered the usual deal:
If neither confesses, both get one year probation.
If both confess, both do 5 years in jail.
If one confesses, he goes free but the other does 10 years hard time.
Here’s what actually goes through their minds:
“Okay, if neither of us confesses, we have to go back to the real world. But its so hard there!
But if I confess, he will kill me when he gets out.. so thats bad…
If both of us confess, then we can just get back to jail and continue our lives!”
Lateral thinking, people ;)