It’s unclear what people mean when saying they’re reporting a probability according to their inside view model(s). We’ll look through what this could mean and why most interpretations are problematic. Note that we’re not making claims about which communication norms are socially conducive to nice dialogue. We’re hoping to clarify some object-level claims about what kinds of probability assignments make sense, conceptually. These things might overlap.
Consider the following hypothetical exchange:
Person 1: “I assign 90% probability to X”
Person 2: “That’s such a confident view considering you might be wrong”
Person 1: “I’m reporting my inside view credence according to my model(s)”
This response looks coherent at first glance. But it’s unclear what Person 1 is actually saying.... (read 804 more words →)
Oh yeah, the Folk Theorem is totally consistent with the Nash equilibrium of the repeated game here being 'everyone plays 30 forever', since the payoff profile '-30 for everyone' is feasible and individually-rational. In fact, this is the unique NE of the stage game and also the unique subgame-perfect NE of any finitely repeated version of the game.
To sustain '-30 for everyone forever', I don't even need a punishment for off-equilibrium deviations. The strategy for everyone can just be 'unconditionally play 30 forever' and there is no profitable unilateral deviation for anyone here.
The relevant Folk Theorem here just says that any feasible and individually-rational payoff profile in the stage game (i.e. setting dials at a given time) is a Nash equilibrium payoff profile in the infinitely repeated game. Here, that's everything in the interval [-99.3, -30] for a given player. The theorem itself doesn't really help constrain our expectations about which of the possible Nash equilibria will in fact be played in the game.