Pretty interesting! You can't play real tit-for-tat, since you don't know the history of those you're playing against ... so you have to rely on reputation ... and so you have to be careful about your reputation, since it's pretty likely that nobody will cooperate with those of low reputation...
I'll probably submit something, will anybody else?
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Likewise, if you were faced with your Option 1: Save 400 Lives or Option 2: Save 500 Lives with 90% probability, would you seriously take option 2 if your loved ones were included in the 400? I wouldn't. Faced with statistical people I'd take option 2 every time. But make Option 1: Save 3 lives and those three lives are your kids or option 2: Save 500 statistical lives with 90% probability I don't think I'd hesitate to pick my kids.
In some sense, I'm already doing that. For the cost of raising three kids, I could have saved something like 250 statistical lives. So I don't know that our unwillingness to torture a loved one is a good argument against the math of the dust specks.