We learned in earlier discussions that according to

Assignment Help Finance Basics
Reference no: EM13392807

We learned in earlier discussions that according to Aristotle and Bentham, one’s happiness was the highest goal. Enter social contract. How does one ensure one’s self-interest when one has to compromise with another to achieve the goal? David Gauthier proposes that it is possible, offering the Prisoner’s Dilemma as an example.

According to the story of the Prisoner’s Dilemma, two people have been brought in for questioning, conducted separately, about a crime they are suspected to have committed. The police have solid evidence of a lesser crime that they committed, but need confessions in order to convict them on more serious charges. Each prisoner is told that if she cooperates with the police by informing on the other prisoner, then she will be rewarded by receiving a relatively light sentence of one year in prison, whereas her cohort will go to prison for ten years. If they both remain silent, then there will be no such rewards, and they can each expect to receive moderate sentences of two years. And if they both cooperate with police by informing on each other, then the police will have enough to send each to prison for five years. The dilemma then is this: in order to serve her own interests as well as possible, each prisoner reasons that no matter what the other does she is better off cooperating with the police by confessing. Each reasons: “If she confesses, then I should confess, thereby being sentenced to five years instead of ten. And if she does not confess, then I should confess, thereby being sentenced to one year instead of two. So, no matter what she does, I should confess.” The problem is that when each reasons this way, they each confess, and each goes to prison for five years. However, had they each remained silent, thereby cooperating with each other rather than with the police, they would have spent only two years in prison.

1.) Consider the concepts of utilitarianism, egoism, and social contract. What moral theory—utilitarianism, egoism, or social contract—is consistent with coopering with the other prisoner and rejecting self-interest as the best option? What is the recommended course of action for each prisoner in regard to the other two theories?
2.) From your experience, is cooperation always in your best interest? Share an example. Alternatively, to state it negatively, why do selfish, self-centered people seem to prosper if cooperation is always in their best interest?

Reference no: EM13392807

Questions Cloud

Identify the various cyber crimes that would apply in a : the last primer you will prepare for your departments training series will give your colleagues a background on the
Opinion polls attempt to predict the results of local : opinion polls attempt to predict the results of local state and federal elections. discuss six reasons why the results
Students must first provide the question and state rational : students must first provide the question and state rational including which page and what logical deductions were made
Provide club three examples of each type of cost what is : should the club cover explicit and implicit costs? imagine that you are asked to consult with a drama club that puts on
We learned in earlier discussions that according to : we learned in earlier discussions that according to aristotle and bentham onersquos happiness was the highest goal.
Evaluate the 4 prsquos and how they interact with a : select a product or service that you have seen advertised in multiple media. prepare a two to three page paper and
Ed sloan wants to withdraw 25000 comprising principal from : ed sloan wants to withdraw 25000 including principal from an investment fund at the end of each year for five years.
Recognize type of merger activity in the industry or one : management has recognized the effect of changes in the real-world competitive environment and government policies on
You have just computed the present value of the expected : you have just calculated the present value of the expected cash flows of a potential investment. management thinks your

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the amount of annual dividend

Assume you are willing to pay $30 today for a share of stock which you will expect to sell at the end of year one for $32. If you require and annual rate of return of 12 percent

  What was the ending equity

During the last year, Delta Co had Net Income of $159, paid $15 in dividends, and sold new stock for $30. Beginning equity for the year was $670. What was the ending equity?

  Knowledge about corporate finance

A corporation has decided to provide the pension for key employee who is scheduled to retire in 12 years-What should the annual payments be in order to fund this pension?

  Why are the costs of selling equity so much larger

Why are the costs of selling equity so much larger than the costs of selling debt?

  What is the degree of operating leverage

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3 percent, the operating cash flow increases by 7.11. What is the degree of operating leverage if the contribution margin per unit is 4?

  Underwrite securities

Before entering a formal agreement, investment bankers carefully investigate corporation whose securities they underwrite; this is especially true of the issues of firms going public for the first time.

  Which investment has the greater relative risk

following is the information for two stocks: stock D 10.0% expected return and 8% standard deviation. Stock E 36% expected return and 24% standard deviation. Which investment has the greater relative risk?

  Significant internal events affecting cash position

At one time many customers turned to Sears for home improvement projects. As the economy boomed many warehouse stores began to open their doors.

  Nci-parent bonds from unaffiliated parties

At the beginning of the year, an 80 percent owned subsidiary acquired a parent's bonds from unaffiliated parties at a gain of $20,000.

  Determine expected future stream of dividends

In 1965, Warren Buffett get control of a New England textile business called Berkshire Hathaway for about $10 per share. Today the stock sells for around $135,000 a share and Mr. Buffett is the 2nd richest person in America.

  How large a sales increase can the company achieve

How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?

  Compute variance of the returns on common stock

The rate of return on the common stock of Flowers by Flo is expected to be 14 percent in a boom economy, 8 percent in a normal economy, and only 2 percent in a recessionary economy.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd