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Wei_Dai comments on Open Thread: June 2010 - Less Wrong
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Are you saying that classical game theorists would model the button-pushing game as one-shot PD? Why would they fail to notice the repetitive nature of the game?
I'd be far more willing to believe in game theorists calling for defection on the iterated PD than in mathematicians steering mainstream culture.
However, with the positive-sum nature of this game, I'd expect theorists to go with Schelling instead of Nash; and then be completely disregarded by the general public who categorize it under "physical ways of causing pleasure" and put sexual taboos on it.
The theory says to defect in the iterated dilemma as well (under some assumptions).
Here's what the theory actually says: if you know the number of iterations exactly, it's a Nash equilibrium for both to defect on all iterations. But if you know the chance that this iteration will be the last, and this chance isn't too high (e.g. below 1/3, can't be bothered to give an exact value right now), it's a Nash equilibrium for both to cooperate as long as the opponent has cooperated on previous iterations.