Last week’s episode of The Good Wife (““Trust Issues”) was interesting for two reasons: it used a “ripped from the headlines” legal case that I discuss in my book on bargaining and the legal argument they use is essentially a trivial application of pre-play cheap talk in a repeated prisoner’s dilemma.
The $9 Billion Google/Apple Anti-Trust Lawsuit
First, the background of the real life version of the case. In the early 2000s, Google and Apple (along with Adobe and Intel) allegedly had a “no poaching” gentleman’s agreement. That is, each company in the group pledged to not attempt to hire employees at any of the other companies. The employees eventually figured out what was going on, filed a $9 billion lawsuit, and settled in April 2014 for an undisclosed amount.
Why is the practice illegal? It goes without saying that quashing competition among firms hurts the employees’ bargaining…
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Utopia, you are standing in it! 
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