Source: EconLog
by Jon Murphy
“People conspire all the time. Firms collude. Politicians bargain behind closed doors. Militaries deceive their enemies. But other conspiracies are detected, or they do not last long. Why do some remain secret while others are revealed? A simple game theory model can help illustrate that the probability of a conspiracy being revealed depends on the number of independent choosing individuals whose cooperation is necessary, and the incentives those individuals face. The basic intuition of what makes it hard to keep a conspiracy a secret is not new. But there are interesting implications for institutional design.” (08/21/26)