Published daily by the Lowy Institute

One reason international diplomacy is so hard

One reason international diplomacy is so hard
Published 14 Oct 2013   Follow @SamRoggeveen

During the course of an interview, the behavioural economist Richard Thaler explains findings from the UK game show Golden Balls, which always ends with a prisoner's dilemma game in which the stakes are around £100,000. When compared to data from prisoner's dilemma experiments in the lab, Thaler found that the rate of cooperation reduces as the stakes increase (see the graph above). For those unfamiliar with the prisoner's dilemma, here's a clip from Golden Balls:

(H/t The Browser.)



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