If neither takes the deal, both get one year in prison. In this scenario, the best outcome is the last, in which the total time served jointly is two years. This result depends on cooperation. The worst outcome is the second, in which a total of four years is served. This result is driven by self-interest.
Human nature being what it is, the latter result is the most likely.
In the real world, the relationship of self-interest and cooperation is usually more complex. As in the case of pacemaker development, the best results will come from a mix of competition and cooperation. But as the market changes and managed care becomes more dominant, dilemmas like McNeil's may become more common. For medical device companies, the answer will increasingly be yes. Post them in our Members' Discussion Forums .