It's a bit of a pain the way it works at the moment - I think I've only got one ransom, ever. Must have had seventy or eighty refused in my current game. A diplomatic option would be good, though perhaps a bit hard to code. The ability to ransom individual units rather than the entirety of those captured might also be better......
In reality, the decision wasn't one of "pay the ransom now or we execute instantly" - it wasn't uncommon for captured nobles and royalty to be held for years on end until their families could afford the ransom. So, at the moment, what could be quite an interesting game feature is really no more than extraneous tinsel. Not a game breaker, though - at least there's no piety or chivalry loss if prisoners are executed and you've offered to ransom first.
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