The advance in the S&P 500, boosted by the latest three weeks of
consecutive gains, is at risk if negotiations over the tax
increases and spending cuts, known as the fiscal cliff, make no
progress in the coming weeks.  The fiscal cliff negotiations
between the two parties in Washington are reminiscent of a
prisoners’ dilemma.  The “prisoners’ dilemma” is the name of an
example of game theory that illustrates why two parties might
not cooperate, even if it appears that it is in their best
interests to do so.  It was originally created in 1950. The
classic example of the game goes like this: Two people are
arrested, but the police do not have enough information to
convict them.  The police separate and isolate the two, and
offer both the same deal: if one testifies against his partner,
and the other remains silent, the first goes free and the one
that remains silent gets a one-year sentence.  If both
remain silent, they get the best outcome: both are sentenced to
only one month in jail on a minor charge. But if