Tacit negotiations & social dilemmas copy
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This document discusses tacit negotiations and social dilemmas. It begins by distinguishing between cooperative games, which involve explicit contracts and mutual understanding, and non-cooperative games, which feature tacit contracts and uncertainty about others' actions. It then examines the prisoner's dilemma, in which two individuals may choose to cooperate or defect, and how this relates to social dilemmas involving multiple stakeholders. Specific examples are provided, such as a price war between three cell phone companies in Egypt, to illustrate cooperative and non-cooperative strategies in different scenarios.
Tacit negotiations & social dilemmas copy
- 1. Tacit Negotiations & Social Dilemmas By Alaa Abdul Hameed6/21/13
- 2. ONTARGET Prisoner Dilemma Types Agenda & Table of content Cooperative Games VS Non Cooperative Games Prisoner Dilemma and Social Dilemma Prisoner Dilemma Strategies Social Dilemma Types Social Dilemma Strategies
- 3. ONTARGET Cooperative Games Contract is explicit Mutual understanding People usually come to the table Voluntarily Non Cooperative Games Contract is Tacit People dont know what the other will do People usually pulled to the negotiation Cooperative Games VS Non Cooperative Games John Nash
- 4. ONTARGET Mobinil, Vodafone & Etisalat Rating War By nine years of controlling the market, Mobinil and Vodafone got through a cooperative agreement that they would settle the market in a level of around 40 pt per min rate. By the first of May 2007 a third negotiator came on the table claiming for his slice of the pie which was Etisalat. Etisalat came to the market with a Growth strategy that is targeting the Market Share; so they adopted to go through a price war against the other Market Negotiators, which was Mobinil & Vodafone. This non cooperative approach leaded to an enormous change in the price level per min rating. 6/21/13
- 5. ONTARGET Click icon to add pictuPrisoner Dilemma and Social Dilemma Prisoner Dilemma is the kind of dilemmas that been reasoned of an non cooperative agreements , this kind of dilemmas was stamped by prisoner because its affect only the interactive 2 persons of entities in the negotiation. while the social dilemmas was stamped as social because its affect will be upon multiple persons or the whole society 6/21/13
- 7. ONTARGET One Shot Decision Repeated interaction for infinite number of trails Repeated interaction for infinite number of trails 6/21/13 Thelma & Louise Backward induction, singling opponents moves Election or Rating example Preferably cooperative, Forward thinking logic Parliament election previously Prisoner Dilemma Types
- 8. ONTARGET Prisoner Dilemma Strategies Winner is loser First move is a cooperative Move then follow the opponent moves Draw Backs: never beat the opponent Recovering from defection Make your moves according to your opponent moves You have to make your decision at the same time your opponent do 6/21/13 Tit For Tat Strategy Cell Phone Operators moves application on both strategies
- 10. ONTARGET 6/21/13 Social Dilemmas is always stamped as a non Cooperative negotiation as foot its characteristics: Harder communication as large number of stakeholders. Lesser control over the negotiation. Cost of spoilage will be separated between the negotiators. The originator of the defection will be anonymous. The most common problem in the social dilemmas is the Tragedy of commons i.e. OPEC Organization Social Dilemma
- 11. ONTARGET Collective Traps Using pools resources Overuse to the resources Collective Fences Giving resources to the pool Idling of some participants will lead to more load on the rest 6/21/13 Social Dilemma Types