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Abstract
Prisoner's Dilemma is a common game theory scenario in which two players must choose between acting cooperatively or out of pure self-interest. What a player decides affects not only his own outcome but also that of the other player. Friend or Foe, a TV game show that has appeared on the cable Game Show Network (GSN), places pairs of contestants in a situation similar to Prisoner's Dilemma. After working together to accumulate money into a “trust fund,” the two teammates divide their winnings, or not, based on their individual decisions to be a Friend to their teammate or a Foe. We have collected data on the contestants and their behavior from 36 episodes of the show. In this paper we describe how the game show is played, what game theory says about the way that the contestants should act, and how they actually did act on the 36 episodes. We also present an example of how Friend or Foe can be used in a classroom setting not only to introduce game theory but also to review previous course material.
ACKNOWLEDGMENT
The authors wish to thank Sarah Greenwald and the reviewers for their guidance and comments on earlier versions of this manuscript.
Notes
1. A Beautiful Mind. 2001. SKG, Imagine Entertainment.
8. Friend or Foe. Produced for GSN—The Network for Games (formerly Game Show Network) by Sony Pictures Entertainment and Liberty Media Corporation.
11. James Jr., S. Harvey, and J. Cohen. 2002. Does Ethics Training Neutralize the Incentives of the Prisoner's Dilemma? Evidence from a Classroom Experiment. General Economics and Teaching 0202002, EconWPA, revised March 12, 2003.
16. Myerson, R. B. August, 1 2006. E-mail communication with author Peter Alonzi.
17. Oberholzer-Gee, F. and J. Waldfogel. June 5, 2003. Social Learning and Coordination in High-Stakes Games Evidence from Friend or Foe. Working Paper, Wharton School of Business Philadelphia.