Lurker,
You are absolutely right when it comes to compound intereste curves. What looks like little increases at the beginning, takes off like a rocket later. It is truely wonderful mathimatics.
Now on the Prisoner's Delema, I don't know about the computer simulations. I do know that I used to play a game with my college students called "Win as much as you can". The ten rounds of "tit for tat" in the real live situation, did as I said earlier cause total ruin and some bad feelings among the players as well. I had to debrief them when the game was over, pointing out that I had put them in a "bad system", so they wouldn't go away with great distrust for their fellow students. I played this game in a one week management workshop in Dundee Scotland on a Tuesday. On thursday, one man was still mad at another. One tryed to apologize and the other said, "never mind, I have seen your true colors." This is a very dangerous game with real people.