about 30 pages. explains the prisoner’s dilemma game theory. Explains the how a one-time game results in noncooperation. Goes through a number of possible fallacies that causes people to reach an incorrect solution. presents the dilemma in an emotionally neutral narrative with only positive rewards instead of punishments. Replace one prisoner with a coin toss. All this is done to help people view the dilemma without any emotional framing that may cause them to reach an incorrect solution. introduce the iterated prisoner’s dilemma.
Then show how the laissez fair free market maps, sort of, to an iterated prisoner’s dilemma, but sometimes to a one-time dilemma. Show how the prisoner’s can work together to regulate the game itself, i.e. actually change the payout matrix to a stable and fair solution for everyone.
Discuss “efficiency” of an unregulated market, compare to the efficiency of a one-time prisoner’s dilemma. (both prisoner’s rat each other both get 5 years instead of the regulated outcome of 1 year. Unregulated market is 4 years inefficient per player.
Then look at regulated market and how it is efficient. One-time, short-term iterated, and long term iterated games all achieve the best possible fair outcome every iteration.
Then look at health care issues. Often models as a one-time prisoner’s dilemma. Customer may pay premiums for years, but first time he gets cancer, insurance company boots him off the rolls.