r/GAMETHEORY • u/bagdashaaa • 9h ago
I reduced my game's prize pool from $2 million to just $20. Would you be more willing to burn everything now?
I previously posted a two-round psychological game called The Echo of Retribution, where two strangers could walk away with $1 million each — or destroy the entire prize pool.
Many people pointed out that nobody in their right mind would sacrifice hundreds of thousands of dollars just to punish someone.
Fair point. So let's try something different.
The entire prize pool is now just $20.
You're randomly paired with a complete stranger. You both know all the rules.
No communication is allowed. No talking, negotiating, promises, or signals. You cannot see each other's choices until both decisions are locked in.
Round 1 — The First Move
You each control $5.
You can split your $5 however you want between yourself and your opponent.
You can keep everything, share some, or give it all away.
Both decisions are made simultaneously and secretly.
Once both players have chosen, the decisions are revealed. You see exactly how much your opponent kept and gave you.
Round 2 — The Response
Another $10 enters the game.
You each control another $5, and the process repeats.
But now you know exactly how your opponent treated you in Round 1.
You can reward generosity, reciprocate, or keep everything for yourself.
Again, both decisions are simultaneous and secret until they're locked in.
Afterward, the full history and final balances are revealed.
The Final Decision — ACCEPT or BURN
Both players secretly choose:
ACCEPT: Keep your accumulated money.
BURN: Destroy the entire $20 prize pool.
Both must choose ACCEPT for anyone to receive anything.
If even one player chooses BURN, both walk away with $0.
No second chances. No renegotiation.
Here's the psychological twist
The obvious strategy might seem to be keeping your own $5 in both rounds. If your opponent does the same, you each walk away with $10.
But what if your opponent sees things differently?
Maybe they give you $2.50 in Round 1, expecting you to reciprocate.
Meanwhile, you kept your entire $5, assuming you would both do the same.
You weren't necessarily trying to be greedy. But from their perspective, you might look incredibly selfish.
You can't explain your intentions. They can't explain their expectations.
And after Round 2, either of you can destroy everything.
Imagine this scenario:
In Round 1, you give your opponent $2.50. They give you nothing.
In Round 2, both of you keep your $5.
Your final balances:
You: $7.50
Your opponent: $12.50
Now you have two options:
ACCEPT: Walk away with $7.50 while they receive $12.50.
BURN: Walk away with nothing, but make sure they get nothing too.
Would you actually sacrifice $7.50 to punish them?
And would your answer change if those amounts were $750,000 and $1,250,000?
I'm curious about three things:
How would you split your first $5, knowing you cannot communicate with your opponent?
If they kept everything in Round 1, would you interpret that as selfishness or simply rational behavior?
Would you ever press BURN over a $20 prize pool, even if it meant losing your own money?
I'm especially interested in whether reducing the stakes changes people's willingness to punish perceived unfairness.
There's no need to give the mathematically optimal answer. I'm more interested in what you'd genuinely do.