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Today the big banks collectively agreed to inject $30bn of deposits into First Republic to sure it up: https://www.bloomberg.com/news/articles/2023-03-16/first-

Today the big banks collectively agreed to inject $30bn of deposits into First Republic to sure it up: https://www.bloomberg.com/news/articles/2023-03-16/first-republic-to-get-30-billion-of-bank-deposits-in-rescue?srnd=markets-vp&leadSource=uverify%20wall https://www.bloomberg.com/news/articles/2023-03-16/first-rep... Meanwhile, all the benevolent VC techbros had to do was collectively agree to just not withdraw all of their deposits from SVB en masse, and they couldn't even muster that. How deep is the rot in SV?

jahewson 4y ago
That would be irrational. It’s a Prisoner’s Dilemma and no matter what any individual would prefer to do the only rational move is to assume others will betray you. I don’t think it’s fair to ask SV to behave irrationally.
- 462436347 4y ago
  These hand-wavy appeals to rationality and game theory to justify sociopathic foot-gunning by VCs is really getting tiring. First, it's not a Prisoner's Dilemma if the parties can communicate with each other: https://en.wikipedia.org/wiki/Prisoner%27s_dilemma https://en.wikipedia.org/wiki/Prisoner%27s_dilemma > Two members of a criminal gang, A and B, are arrested and imprisoned. Each prisoner is in solitary confinement with no means of communication with their partner. Second, the traditional framing of the Prisoner's Dilemma disregards the aftermath, and the lasting reputational and trust consequences of betrayal, which would be substantial for any VC that failed to cooperate, or outright backstabbed the others.
- stefan_ 4y ago
  You know the most important part in "prisoners dilemma" is the prison.
- everybodyknows 4y ago
  Byzantine General's Problem might be the better analogy: https://www.microsoft.com/en-us/research/publication/byzantine-generals-problem/ https://www.microsoft.com/en-us/research/publication/byzanti...
hackernewds 4y ago
I think you meant to say shore it up
- 462436347 4y ago
  You're right.

jahewson 4y ago

That would be irrational. It’s a Prisoner’s Dilemma and no matter what any individual would prefer to do the only rational move is to assume others will betray you. I don’t think it’s fair to ask SV to behave irrationally.

462436347 4y ago
These hand-wavy appeals to rationality and game theory to justify sociopathic foot-gunning by VCs is really getting tiring. First, it's not a Prisoner's Dilemma if the parties can communicate with each other: https://en.wikipedia.org/wiki/Prisoner%27s_dilemma https://en.wikipedia.org/wiki/Prisoner%27s_dilemma > Two members of a criminal gang, A and B, are arrested and imprisoned. Each prisoner is in solitary confinement with no means of communication with their partner. Second, the traditional framing of the Prisoner's Dilemma disregards the aftermath, and the lasting reputational and trust consequences of betrayal, which would be substantial for any VC that failed to cooperate, or outright backstabbed the others.
stefan_ 4y ago
You know the most important part in "prisoners dilemma" is the prison.
everybodyknows 4y ago
Byzantine General's Problem might be the better analogy: https://www.microsoft.com/en-us/research/publication/byzantine-generals-problem/ https://www.microsoft.com/en-us/research/publication/byzanti...

hackernewds 4y ago

I think you meant to say shore it up

462436347 4y ago
You're right.