This brief outline of a real "Prisoner's Dilemma" presents an introduction to the economic concept, introduces key terms, applies the concept to climate change and presents two relevant matrices. It was created for use in a student seminar.

1. Real Prisoner’s Dilemma
Vanessa Yasmin Schneider

3. A Real Real Prisoner‘s Dilemma

4. Economic Ramifications
• Costs
– Egalitarianism
– Rawlsian criteria
– Proportionality
• Benefits

5. The Matrix
They cut emissions in the
proposed manner
They don‘t cut emissions in
the proposed manner
You cut emissions in the
proposed manner
There are economic losses
for all involved, but the
reduced emissions induce
beneficial climate change
You experience economics
losses, but the reduced
emissions buy time
You don‘t cut emissions in
the proposed manner
The others experience
economic losses, but the
reduced emissions buy
time
Climate change creates
irreversible circumstances

6. The Matrix Reloaded
They cut emissions in the
proposed manner
They don‘t cut emissions in
the proposed manner
You cut emissions in the
proposed manner
There are economic losses
for all involved, but the
reduced emissions induce
beneficial climate change
You experience economics
losses, but the reduced
emissions buy time. You
retaliate though, by
increasing emissions again
You don‘t cut emissions in
the proposed manner
The others experience
economic losses, but the
reduced emissions buy
time. They retaliate
though, by increasing
emissions again
Climate change creates
irreversible circumstances

7. Bibliography
• http://xkcd.com/1016/
• Fehr and Fischbacher (2002): “Why Social Preferences Matter
– the Impact of Non-Selfish Motivations on Competition,
Cooperation and Incentives”, Economic Journal, vol. 112, pp
C13-C18.
• "Economics focus." Economist [London, England] 29 Sept.
2007: 99. The Economist Historical Archive 1843-2006. Web. 4
Mar. 2012.
• 350.org