Prisoner's Dilemma & Cooperation Strategies

Prisoners' Dilemma Style Conflict

• Involves a choice between cooperation and self-interest
• The best collective outcome happens when both parties cooperate
• Individual incentives can disrupt cooperation
• "Information dilemma" is an example where withholding information benefits individuals but sharing benefits the group

Consequences of Uncooperative Actions

• Acting uncooperatively in multiple rounds leads to a loss of trust
• Can result in reduced cooperation and worse outcomes for all involved parties over time
• Promotes the importance of long-term strategic thinking

Tit-for-Tat Strategy

• Begins cooperatively
• Retaliates against non-cooperation
• Forgives cooperative behavior
• Works well in repeated interactions like competitive advertising

Limits and Dangers of Tit-for-Tat

• Can cause endless retaliation cycles
• Doesn't work well if mistakes occur
• Vulnerable if the opponent exploits its predictability

Biased Punctuation of Feud History

• Individuals construe conflicts self-servingly
• This leads to the reinforcement of feuds
• Attribution errors lead to biased punctuation
• Sinister Attribution Error involves assuming bad intentions behind an action
• Actor-Observer Bias involves attributing own's actions to circumstances, and others' actions to their character
• Hanlon's Razor suggests not attributing malice to what can be explained by incompetence or ignorance

Understanding Sayings

• "Lightning never falls from a blue sky" indicates that unexpected negative actions often have a buildup
• "The tree remembers what the axe forgets" implies harmful actions have lasting impacts, even if forgotten by the doer

Negotiation Goals and Parameters

• Resistance Point stands for the worst acceptable outcome
• Target is the ideal outcome
• BATNA (Best Alternative to Negotiated Agreement) means a backup plan
• Zone of Potential Agreement (ZOPA) defines the range where a deal is possible

Negotiation Tactics

• Lowball/Highball means beginning with extreme offers to shift expectations
• Anchoring and Adjusting means setting an initial reference point to shape negotiations
• "Split the Difference" involves finding a midpoint solution
• Logrolling involves trading off priorities for mutual gain
• Win-Win Agreements produce better results than Win-Lose or Lose-Lose Agreements, where cooperation and flexibility are critical

Ethical Challenges as Dilemmas

• Ethical issues may involve choosing competing "right" choices rather than a clear right vs. wrong

Ethical Dilemma Frameworks

• Consequentialism/Utilitarianism is to judge actions by outcomes that is the greatest good for the greatest number
• Deontological Ethics is to judge actions by adherence to moral rules
• Virtue Ethics is to judge actions by moral character

Blind Spots in Ethical Reasoning

• Biases prevent objective moral decision-making

International Management Styles

• Expatriate managers may prefer their home country's practices, affecting effectiveness abroad

International Business Arrangements

• Franchising involves licensing a brand or business model
• Licensing involves permitting the use of intellectual property
• Strategic Alliance is a cooperative agreement without equity exchange
• Foreign Subsidiary represents a fully owned foreign operation
• Joint Ventures are partnerships between two companies for mutual benefit

Tariffs

• Tariffs are taxes on imported goods, affecting trade and pricing strategies

International Business Practices

• Dumping involves selling goods below market value in foreign markets
• Global Sourcing involves procuring goods or services internationally for cost or efficiency

Hofstede's Cultural Dimensions

• Represents a framework for understanding cultural differences
• Examples includes: individualism vs. collectivism and power distance

Organizational Behavior Discipline

• The study of how people behave within organizations
• Impacts leadership and organizational culture

Big Five Personality Traits

• Includes: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism
• These are used to predict behavior in the workplace

Cognitive Biases

• Confirmation Bias is favoring information that supports existing beliefs
• Fundamental Attribution Error means overemphasizing personality in explaining others' behavior while underemphasizing situational factors

Theory of Social Intuition

• Ethical decisions rely on immediate gut reactions rather than deliberate reasoning

Exploration of the Prisoner's Dilemma and its implications for cooperation versus self-interest. Discusses the consequences of uncooperative actions, focusing on loss of trust and reduced collective outcomes. Examines the Tit-for-Tat strategy, including its advantages, limitations, and potential dangers.