This competition/cooperation dilemma reminds me of the fable of the Prisoner's Dilemma. Two men, let us call them Al and Bill, rob a bank, are arrested and placed in separate jail cells. The wily prosecutor goes to Al in his cell and points out that he could confess to the crime or be silent, and these are the probably outcomes:
- AL CONFESSES; BILL IS SILENT - While Al would go free, Bill would serve the maximum punishment, probably 5 years
- AL CONFESSES; BILL CONFESSES - Both Al and Bill would serve time, but the prosecutor would work for an early parole: they would each serve 3 years
- AL IS SILENT; BILL CONFESSES - Al would serve the maximum of 5 years, while Bill would go free
- AL IS SILENT; BILL IS SILENT - The prosecutor would get them on an earlier crime. Both would serve about 1 year
The prosecutor then presents the same possibilities to Bill, hoping to receive a confession from at least one of them.
It seems that it is best for Al to be selfish, forget about his partner Bill, and confess. Bill would get 5 years, but Al would go free.
But it is not that simple. If Bill is just as selfish, he would confess too. In this case both Al and Bill would serve 3 years.
Maybe Al would be better off remaining silent and hoping that Bill would stay silent too. This would get them both a minimum sentence of 1 year. Al would be taking a chance, though, because if Bill confesses, Al would receive the maximum penalty.
What should Al do?
The Competition/Cooperation Dilemma
I would like to present the dilemma in terms of competition and cooperation. When either Al or Bill confesses, he is competing with his partner. When either Al or Bill is silent, he is cooperating with his partner. The picture of this dilemma is as follows:
- Competing produces the greatest reward for Al, if Bill does not compete but cooperates. If both compete, they are both penalized.
- Cooperating produces the best result for Al if Bill also cooperates. If Bill does not cooperate, but competes, Al is penalized as a sucker.
Should Al compete or cooperate?
The Best Strategy
According to Robert Axelrod, Professor of Political Science and Public Policy at the University of Michigan, who has studied the Prisoner's Dilemma in depth, the best strategy to use depends on the length of association between Al and Bill. If Al does not plan to interrelate with Bill anymore than this once, he should confess and shoot for maximum payoff for himself. However, if Al expects to have a long-term relationship with Bill, his best strategy is to start with cooperation.
But what should Al do over a period of time as he interacts with Bill?
Axelrod set up a Prisoner's-Dilemma computer game and invited intellectuals and experts from several disciplines for a tournament. Each participant came with a computer program representing her strategy for gaining the most points. Of the many strategies that were tried this way, the simple strategy of Tit for Tat turned out to be best. In Tit for Tat you:
- Cooperate on first move
- If other player then competes, you compete
- If other player than cooperates, you cooperate
Axelrod notes that once you establish cooperation it tends to be maintained. Over a period of time, people tend to be more cooperative. This is why he calls his book, Evolution of Cooperation. The book is fascinating reading.
Except for Scorpions
The strategy of Tit for Tat starting with a first move of cooperation works for Al, providing Bill is not a scorpion. You probably heard the story of the scorpion and the frog. A scorpion and a frog arrive at the bank of a stream. The scorpion asks the frog to carry him on his back across the stream to the other bank. The frog asks, "How do I know you will not sting me?" To which the scorpion replies: "Because then I will sink and die too." The frog agrees. Midway across the stream the scorpion stings the frog. As the frog is dying he asks, "Why?" "Because it is my nature," the scorpion replies.
If you are dealing with a competitor who must win in at all costs, even if it hurts him, the Tit for Tat strategy will fail. You know who these people are. Avoid them like the plague.
The overwhelming majority of people in the world are not scorpions, and welcome cooperation. Even if you do not know whom you are dealing with, always start with cooperation.
