what is a grim strategy? economics!?
I really do not understand the concept of grim strategy. Please do not copy & paste a definition.
Is grim strategy just a simple way of saying that in a transaction (if we say that two people exist),
one might be thinking that the other may betray him so he sets up a cautious plan and if the other guy betrays him, this plan “triggers” and from then on, the two would not work along anymore? Is it something like this?
Say that there is Person A and Person B.
A and B does a trade kind of thing.
A adopts grim strategy that triggers when B betrays A.
If it triggers, the two will not trade anymore.
So is grim strategy just like a cautious plan that will trigger when the other betrays??? Is it a simple concept like this? or is it much more in dept??? It’s because the book I’m reading explains it pretty hard…
22 hours ago – 3 days left to answer.
Additional Details
but what exactly is grim then?? A strategy people set up in case someone else betrays? But in the book Im reading … if someone adopts grim, it does not mean that they end the cooperation because someone betrayed. So is it just like a trigger? Adopting grim means adopting the trigger but it’s actually not triggered? Do you get what I’m saying??? sorry… I’m kinda lost
15 hours ago
reposting this question
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about 1 year ago
The grim trigger [as it also known] operates like this:
“From the moment the other party departs from co-operative dealing, always choose the most punitive response.”
In the Prisoners’ Dilemma, always choose the most selfish response from that moment.
In mutually assured destructive games, always respond with the greatest force whenever there is the slightest threat.
In monopolistic competition, always respond with price reductions, damaging advertising, loss-leaders and so on from that moment onwards.
It can be shown that the grim trigger is non-optimal because it damages the trading environment, destroys the open market, annihilates the planet.
OK?