Online and in the news, you hear about the virtues of a “high trust society”. Japan in 2011 was noted for the lack of looting following the Fukushima disaster by both the BBC and NPR. Many attributed this lack of thievery in the wake of a natural disaster to Japan being a “high trust society”.
An understanding of the prisoner’s dilemma tells you why a “high trust society” might be valuable. Simply put, the prisoner’s dilemma describes a scenario where uncooperative behavior, that constitutes a dominant strategy for both parties, can be deterred by government action to achieve a pareto optimal move whereby each party achieves a utility improvement via their joint choice of cooperative behavior. A world where cooperative behavior (looting abstention) does not need to be compelled by costly government action saves tax payer money and is therefore more efficient.
On the other hand, one can see how an uncooperative society comparatively struggles. Either the parties reside at a pareto inefficient utility level, or the government has to continuously spend money to compel cooperative behavior. Neither of these are good.
This understanding helps explain why so many say LA is failing. LA is experiencing unprecedented levels of copper wire theft from their street lights currently. Over 27,000 feet of copper wiring has been stolen since February of last year according to the LA Dept of Water & Power. Now, LA city officials are calling on Governor Newsom to pass AB1941 criminalizing “organized metal theft” for up to a year. Most US cities don’t even consider the need to deter infrastructure pilfering. LA must now do so to ensure its citizens can simply drive on lit roads.
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