As far as I understand, the basic idea is to cooperate with a probability that depends on whether your opponent cooperated in the previous round. (Actually there are 4 probabilities because the strategy also depends on whether you cooperated in the last round.)
For example, you might say that you will cooperate with prob 75% if I cooperated, or 25% otherwise.
By choosing the probabilities carefully this can turn the game into one where the more I choose to cooperate, then the better I do - but you will always outperform me (unless I choose to always defect when we both end up equally lost).
Feels similar to only proposing win-lose business deals. You will never "lose" but will soon run out of people willing to deal.
For example, you might say that you will cooperate with prob 75% if I cooperated, or 25% otherwise.
By choosing the probabilities carefully this can turn the game into one where the more I choose to cooperate, then the better I do - but you will always outperform me (unless I choose to always defect when we both end up equally lost).
Feels similar to only proposing win-lose business deals. You will never "lose" but will soon run out of people willing to deal.