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Coscott comments on Open Thread, September 23-29, 2013 - Less Wrong Discussion
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The game you are talking about should not be called PD.
The solution will be for everyone to pick randomly, (weighted based on the difference in C/C and D/D payoff) until they get a C/D outcome, and then just picking the same thing over and over. (This isn't a unique solution, but it seems like a Schelling point to me.)