The $60,000 Diet

The $60k Diet and Prisoner's Dilemma

Economist Alex Tabarrok of George Mason University -- a former colleague of mine at the Independent Institute in California -- theorizes that the wager could create an incentive for Ted and I to conspire NOT to lose weight.

Now this does raise an interesting prisoner's dilemma problem, with Ted and Ray as the prisoners.  If the prisoners can agree to "cooperate" they could both eat and lose neither weight nor money.  But with $1000 per pound at stake can Ray count on Ted not to cheat on his diet by dieting (and vice-versa)?  But in this context is cooperation really cooperation or is it just joint self-sabotage?  A true dilemma.  But I have a solution.

I stand ready to be Leviathan!  As a service to my friends, I propose that Ted and Ray pay me $1000 for every pound less than 60 that they fail to lose.  Hell, out of the goodness of my heart, I will pay each of them $500 upfront for the honor of being Leviathan.  Now that is an incentive! 

$60,000 Diet in the Washington City Paper

Arin Greenwood writes:

My friend Ray made a $60,000 bet with his friend Ted that he’d lose 60 pounds in nine months. Ted made the same bet back. At the end of nine months, Ray and Ted have to pay each other $1,000 per pound each has lost. Ray claims he’s hoping no money changes hands, but I hear he’s secretly putting butter in his friend’s food.

Ray, who has lost 3.6 pounds on Day 1, is keeping a video diary of his weight lo$$ adventures, which you can watch on YouTube if you are so inclined, and if you are so inclined and you see Ray Out and About and Eating Cake you have permission to steal his wallet.