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Signaling Cooperation: Employee's Dilemma

I’m assuming you’ve heard of the Prisoners’ Dilemma. My summary: 2 people are arrested. If neither tattles they both go free. If one tattles & the other doesn’t, the tattler goes free & the other person goes to jail for a long time. If they both tattle, they both go to jail for a shorter sentence. (The payoffs vary in different versions of PD.)
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