RobinHanson comments on The True Prisoner's Dilemma - Less Wrong
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The entries in a payoff matrix are supposed to sum up everything you care about, including whatever you care about the outcomes for the other player. Most every game theory text and lecture I know gets this right, but even when we say the right thing to students over and over, they mostly still hear it the wrong way you initially heard it. This is just part of the facts of life of teaching game theory.