Eight Short Studies On Excuses by Scott Alexander
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This is: Eight Short Studies On Excuses , published by Scott Alexander on LessWrong.
The Clumsy Game-Player
You and a partner are playing an Iterated Prisoner's Dilemma. Both of you have publicly pre-committed to the tit-for-tat strategy. By iteration 5, you're going happily along, raking up the bonuses of cooperation, when your partner unexpectedly presses the "defect" button.
"Uh, sorry," says your partner. "My finger slipped."
"I still have to punish you just in case," you say. "I'm going to defect next turn, and we'll see how you like it."
"Well," said your partner, "knowing that, I guess I'll defect next turn too, and we'll both lose out. But hey, it was just a slipped finger. By not trusting me, you're costing us both the benefits of one turn of cooperation."
"True", you respond "but if I don't do it, you'll feel free to defect whenever you feel like it, using the 'finger slipped' excuse."
"How about this?" proposes your partner. "I promise to take extra care that my finger won't slip again. You promise that if my finger does slip again, you will punish me terribly, defecting for a bunch of turns. That way, we trust each other again, and we can still get the benefits of cooperation next turn."
You don't believe that your partner's finger really slipped, not for an instant. But the plan still seems like a good one. You accept the deal, and you continue cooperating until the experimenter ends the game.
After the game, you wonder what went wrong, and whether you could have played better. You decide that there was no better way to deal with your partner's "finger-slip" - after all, the plan you enacted gave you maximum possible utility under the circumstances. But you wish that you'd pre-committed, at the beginning, to saying "and I will punish finger slips equally to deliberate defections, so make sure you're careful."
The Lazy Student
You are a perfectly utilitarian school teacher, who attaches exactly the same weight to others' welfare as to your own. You have to have the reports of all fifty students in your class ready by the time midterm grades go out on January 1st. You don't want to have to work during Christmas vacation, so you set a deadline that all reports must be in by December 15th or you won't grade them and the students will fail the class. Oh, and your class is Economics 101, and as part of a class project all your students have to behave as selfish utility-maximizing agents for the year.
It costs your students 0 utility to turn in the report on time, but they gain +1 utility by turning it in late (they enjoy procrastinating). It costs you 0 utility to grade a report turned in before December 15th, but -30 utility to grade one after December 15th. And students get 0 utility from having their reports graded on time, but get -100 utility from having a report marked incomplete and failing the class.
If you say "There's no penalty for turning in your report after deadline," then the students will procrastinate and turn in their reports late, for a total of +50 utility (1 per student times fifty students). You will have to grade all fifty reports during Christmas break, for a total of - 1500 utility (-30 per report times fifty reports). Total utility is -1450.
So instead you say "If you don't turn in your report on time, I won't grade it." All students calculate the cost of being late, which is +1 utility from procrastinating and -100 from failing the class, and turn in their reports on time. You get all reports graded before Christmas, no students fail the class, and total utility loss is zero. Yay!
Or else - one student comes to you the day after deadline and says "Sorry, I was really tired yesterday, so I really didn't want to come all the way here to hand in my report. I expect you'll grade my report anyway, because I know you to be a perfect utilitarian, an...