F. E. Guerra-Pujol

The proposition that “promises ought to be kept is one of the most important normative ideas or value judgements in our daily lives. But what about “illegal promises”? That is to say, what about promises that are, legally or morally speaking, malum in se or inherently wrongful, such as voluntary exchanges that are inherently immoral or wrongful, like bribes, blackmail, murder, etc.? In short, what moral obligations, if any, do such promises impose? Although many of the greatest thinkers in Western civilization have offered a wide variety of theories to explain the source of promissory obligations, it turns out there is a blind spot in this centuries-old conversation, for few theorists have given the problem of illegal or immoral promises any sustained thought. Nevertheless, illegal or immoral promises should be of theoretical interest to us because such promises may help us delimit the outer boundaries of promissory obligations.

Two of the most important ideas in the philosophy of law are the “Coase Theorem” and the “Prisoner’s Dilemma.” In this paper, the authors explore the relation between these two influential models through a creative thought-experiment. Specifically, the paper presents a pure Coasean version of the Prisoner’s Dilemma, one in which property rights are well-defined and transactions costs are zero (i.e. the prisoners are allowed to openly communicate and bargain with each other), in order to test the truth value of the Coase Theorem. In addition, the paper explores what effect (a) uncertainty, (b) exponential discounting, (c) and elasticity have on the behavior of the prisoners in the Coasean version of the dilemma. Lastly, the paper considers the role of the prosecutor (and third-parties generally) in the Prisoner’s Dilemma and closes with some parting thoughts about the complexity of the dilemma. The authors then conclude by identifying the conditions under which the Prisoner’s Dilemma refutes the Coase Theorem.