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Originally Posted by TomCollins
Cooperating results in people taking advantage of you.
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Which is the entire point. If either player tried to play in a way that would result in the best result for everyone, they would get taken advantage of by people just being selfish. So yeah, not a very convincing argument for why people being selfish yields the best results for everyone.
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Tit-for-tat is about as good as it gets for an unknown number of iterations.
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And it's still significantly worse than cooperation every round.
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Of course, the idea that you can't communicate or coordinate or even add penalties for defective shows how limited its applications it is to reality. There are built-in social mechanisms for ostracism of people who do not cooperate and are selfish. This makes them worse off for obvious reasons. This is why people naturally tend to cooperate, even when it might not be in their best interest. Our brain is rewarding us for cooperating. Our brain is also wired to punish people even if it hurts us if we view them as being unfair.
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I agree that the prisoner's dilemma is too restrictive, but look at the rest of what you're saying. You're saying that people are wired in a way that makes them not act in their best interest, while trying to defend the claim that people acting in their best interest yields the best results for society.
Assuming that you really want to say something along the lines of "people looking out for their best interested,
but with the restrictions naturally put into place by our biology, yields the best results for society," then I would ask why you believe our natural mechanisms are better than anything else we could put in place on top of that, and also why you think natural mechanisms work well in today's world.
Ostracism and feelings of guilt works in some contexts, but when people aren't living in small societies where everyone knows one another, and many of our interactions with people are so impersonal, I wouldn't expect our natural tendency to cooperate to be perfectly suited for our conditions.