Reference no: EM132722113

Please, read carefully.

Zero-sum games game in which the total benefits for all participants total zero. are those in which the total benefits for all participants total zero. Baseball can be seen as a zero-sum game. If one is told that the New York Yankees and the New York Mets played an exhibition game and the Yankees won, then one also knows that the New York Mets lost. Basketball and most games in professional football are also zero-sum games because there are a winner and a loser. Poker can also be seen as a zero-sum game. If your five friends have a Friday night game of poker and one player is up to $100, then you also know that the other four players have suffered a cumulative loss of $100.

Non-zero-sum games game that potentially has net results other than zero., on the other hand, are those that potentially have net results other than zero. This simply means that the loss of one player does not directly correspond to the game of another player. In a non-zero-sum game, it is possible for all the players to win or for all the players to lose. The classic illustration of a non-zero-sum game is known as the prisoner's dilemma. The prisoner's dilemma hypothesizes that two criminals (prisoner A and prisoner B) are arrested and charged with the same crime. At the police station, they are separated, and each is given the following option: if you inform the other prisoner, you will be set free, while the other prisoner will receive a five-year sentence. Both prisoners would instinctively recognize that if they both remained silent, the police would have insufficient evidence to convict both of the crime. At worst, they would be held in jail for several months. If, however, both prisoners informed each other, they would probably receive a two-year sentence. Assuming that both prisoners wish to serve the minimal amount of time, their individual decisions will be dictated by what they believe will be the other prisoner's decision. There are four possible outcomes to this scenario:

Prisoner A informs prisoner B while prisoner B remains silent. This is a win for prisoner A and a loss for prisoner B. This is a win-lose outcome.

Prisoner B informs prisoner A while prisoner A remains silent. This is a win for prisoner B and a loss for prisoner A. This is a win-lose outcome.

Both prisoner A and prisoner B inform on each other. This situation essentially represents a loss for both prisoner A and prisoner B. This is a lose-lose outcome.

Both prisoner A and prisoner B trust each other and remain silent. This results in both prisoners doing a minimal amount of time. In effect, this is a win-win for both individuals.

Recall events in your life that took place in school, work, clients, sports, or other activities, and look for examples of zero-sum interactions and examples of win-win interactions.

Question

a) Describe in detail the zero-sum event and how its outcome affected future interactions.

b) Describe in detail the win-win event and how its outcome affected your behavior in future interactions.

c) How will knowing about game theory affect your interactions with customers and suppliers when doing your own business (or getting promoted to a prestigious position in someone else's business)?

d) What are the ideas and principles that guide the interaction?