08/13/2026
The artificial intelligence (AI) infrastructure race is starting to resemble a corporate version of game theory's "Prisoner's Dilemma" problem. Two suspects are questioned separately, and each must choose whether to cooperate with or betray the other. Regardless of what the other person does, betrayal is the safest individual choice. The result is that both typically betray each other, even though mutual cooperation would have produced a better outcome. The dilemma is that what is rational for the individual can be suboptimal for the group.
Read our July 2026 market analysis here: https://www.cedarcovewealth.com/blog/2026/08/spenders-dilemma/