Thursday, October 6, 2011
Prisoner Theory
On Tuesday we did the exercise of the stores being open or closed. Chris and I led the class with the most profit. We determined that our best option was to stay open because of the lesser loss applied and the hopes of winning big. After negotiation we determined that together if we stayed closed that the biggest profit with the least amount of risk would be applied. In order to eliminate risk of backstabbing we sat down and agreed to fill in the remaining weeks in whole so that a change would be eliminated. Little did I know that there was a theory behind how a decision should be made. The prisoner theory determines that we should pick the result that gives us the least consequence given each decision by the other person in the mix. This theory definitely makes sense because it is in human nature to thrive competition and by the rational reason to pick that both compete goes along with that. I guess in order for this theory to work for you then you need to eliminate your morals and ethics going into this situation because you can't look at it like this is how I am so I cant rat the person out because it isn't in the best interest for you. You have got to look at it like this will get me the best thing given the circumstance that I don't know what the other person will do. In other words, you must become the homoeconomicas man.
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I have to agree with you that you have abandon all feelings and emotions and embrace your logical side in order to figure out the problem. My group made a simpler deal with the other group in order to gain profit and minimize loss.
ReplyDeleteI agree you can't really rely on morals or ethics to make that kind of decision. As much as most people don't want to admit it, looking out for number one has to be done when it comes to these kind of situations. I think it's important to remember that you are hoping to find the best outcome restricted to your surroundings and what you think your other part will be doing. It's kind of like the idea of a restrained maximum; finding the maximum outcome constrained to your surroundings.
ReplyDeleteI agree, just as the others do, that you have to give up your personal beliefs when it comes time to make a negotiation. That being said, I wish it weren't that way. It would be nice if both sides could be honest and find the best muddle ground. Keeping our morals about us would be nice in every situation. Sadly, that doesn't seem like an option during the negotiation process and many other things.
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