An agent also faces a guaranteed payoffs problem in Parfit’s hitchhiker, since the driver has already made their prediction (the agent knows they’re safe in the town) so the agent’s choice is between losing $1,000 and losing $0. Is it also a bad idea for the agent to pay the $1,000 in this problem?
An agent also faces a guaranteed payoffs problem in Parfit’s hitchhiker, since the driver has already made their prediction (the agent knows they’re safe in the town) so the agent’s choice is between losing $1,000 and losing $0. Is it also a bad idea for the agent to pay the $1,000 in this problem?