The trick with FDT is that FDT agents never receive the letter and never pay. FDT payoff is p*(-1000000), where p is a probability of infestation. EDT payoff is p*(-1000000) + (1-p)*(-1000), which seems to me speaking for itself.
The problem clearly states:
Assume the agent receives the letter.
So that is baked into the environment, it is a fact. The EDT payoff is maximal.
The trick with FDT is that FDT agents never receive the letter and never pay. FDT payoff is p*(-1000000), where p is a probability of infestation. EDT payoff is p*(-1000000) + (1-p)*(-1000), which seems to me speaking for itself.
The problem clearly states:
So that is baked into the environment, it is a fact. The EDT payoff is maximal.