Saturday, December 31, 2011

Bargaining over Sentinels

Xan poses and provides an answer to an interesting question:
Now, if you were Iran, why would you tell America how you captured its drone, instead of keeping it a secret and perhaps capturing a few more or at least delaying America's progress in developing countermeasures? Maybe Iran cannot resist bragging about its conquest, like the stereotypical comic book villain. But might there be another reason?
Click through to find out why self sabotage on Iran's part might be a good idea.

Hint: the reasoning is related to why an army would prevent itself from retreating by burning a bridge before entering battle (the pictures are broken in my link, but as an exercise, see if you can draw the game tree with the right payoffs).

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