The Game Theory: Prisoner’s dilemma

30 Dec. 2010 General

The Game: Two teams split in equal halves are given two dies (one red and a green). There is an arbitrary bank which collects one dice from each team after each round. The team is supposed to give the dice to the bank at the end of each round after internal discussion. There are four rounds before the next rule change is implemented. The intent of both teams is to win. For Winning they need to beat the other team. The scoring pattern is as disclosed below:

Team A

Team B

Team ATeam B

Green

Green

-3

-3

Green

Red

-3

-6

Red

Green

-6

-3

Red

Red

+3

+3

Till the initial bit of 4 rounds both teams play it safe by hitting GREEN, primarily to ensure that even if they don’t end up on positive, they don’t get the negative route (vis-à-vis the competitor).

After four rounds, bank declares that the only way to win is to be in the +ve side. Also, one representative from each group is allowed to negotiate and discuss with one representative of the other group. Both are supposed to build positive influence for the next set of 2 rounds.

Depending on the scores, one team who were lagging by a point difference of (-3 points) CAN play foul and bridge the gap (if it all it exists). The REAL DILEMA starts NOW. Do you TRUST your negotiation abilities, your hunch, and your interpretation of the body language and intent of other team?

Again, the bank reiterates its stand of ONLY Positive scores win, even if you are in the negative, and lesser than the competitor, its NO GOOD. One more round of sensible negotiation and there you go! Both teams hit the RED and try to and infact do TRUST each other in an attempt to move to POSITIVE.

The whole game is based on the game theory: Prisoner’s dilemma. A classic case of Game Theory intends to create a Win-Win situation and optimize organizational productivity. The thin line between success and failure is bridged, not by defeating other, but by working in tandem with other party. The sooner you realize it, the better it is!

Rishabh Software, a CMMI Level-3 technology company, focuses on cost-effective, qualitative and timely delivered Software Development, Business Process Outsourcing (BPO) and Engineering Services.Contact us today or call 1-877-RISHABH (1-877-747-4224)!

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