Eric Wallach

An Interview with Avinash Dixit, Professor of Economics Emeritus at Princeton University

“The usual idea, especially in the context you’re asking about – prisoners’ dilemmas – is to start with the maximal credible punishment right at the beginning, because the idea is that that will be the most severe threat and so will illicit the best cooperation. But in reality, everybody who’s looked at the way punishments are designed finds that the successful ones are done in a graduated way.”