NEGOTIATION AND SETTLEMENT ADVOCACY, CHAPTER 2:
The Prisoner’s Dilemma
-- Avoiding Exploitation in the Mixed-Motive Exchange
CHANG XINXIN
151SIS04
CONTENT
 Computer Tournaments, p. 28:
• Suggest how cooperation evolves.
 Manager as Negotiator, p.34:
• Bargaining for cooperation and mutual gain.
 Forgiveness Math, p. 37:
• Explain the evolutionary existence of cooperative behavior.
 Studying Economics, p. 39:
• Does studying economics inhibit cooperation?
Computer Tournaments, p. 28： Suggest
how cooperation evolves
One Time Deal
Computer Tournaments, p. 28： Suggest
how cooperation evolves
Lifelong Exchange Once a Month
?
ITERATED PRISONER’S DILEMMA
Manager as Negotiator, p.34: Bargaining
for cooperation and mutual gain
“Negotiator’s Dilemma”
Value Creator:
• Win-Win
• Inventive and cooperative
• Create value
Value Claimer
• Win-Lose
• Exaggerate value of
concessions
• Minimize benefits of the
other’s concessions
• Claim value
Manager as Negotiator, p.34: Bargaining
for cooperation and mutual gain
Forgiveness Math, p. 37： Explain the
evolutionary existence of cooperative behavior
TIT-FOR-TAT
GENEROUS
TIT-FOR TAT
Fatal Flaw: no tolerance of errors
100 Stochastic Strategies
Studying Economics, p. 39：Does studying
economics inhibit cooperation?
Economics Majors
&
Nonmajors
Cooperate
or
Defect
Studying Economics, p. 39：Does studying
economics inhibit cooperation?
 Defection Rate
Economics Majors (60.4%) > Nonmajors (38.8%)
 More cooperate behavior with movement toward graduation
Nonmajors: 53.7%
Economics Majors: 73.7%
40.2%
70%