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- Kevin Gibson (2003). Games Students Play: Incorporating the Prisoner's Dilemma in Teaching Business Ethics. Journal of Business Ethics 48 (1):53-64.The so-called "Prisoner''s Dilemma" is often referred to in business ethics, but probably not well understood. This article has three parts: (1) I claim that models derived from game theory are significant in the field for discussions of prudential ethics and the practical decisions managers make; (2) I discuss using them as a practical pedagogical exercise and some of the lessons generated; (3) more speculatively, I suggest that they are useful in discussions of corporate personhood.
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In this article I discuss the nature of ethical dilemmas and responsibilities. I begin by noting that there are two types of dilemmas, philosophical and behavioral. I distinguish between them, give examples, and explain why it is important to understand their differences. I also use the Prisoner's Dilemma to show why ethical dilemmas are difficult, highlighting the fact that dilemmas result from conflicts of interests and values. I then define what responsibility means, suggesting that there are two parts to responsibility. Like the Prisoner's Dilemma, I use the Contribution Game to show why it is less likely that someone will accept responsibility as problems become larger and why it is important to place emphasis on some entity, such as business, to take responsibility, thus giving rise to the importance of corporate social responsibility. I end with some words of caution about efforts to shift or assume responsibility by, for example, governments.
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Studies consistently report that individuals believe they are far more ethical than co-workers, superiors, or managers in other firms. The present study confirms this finding when comparing undergraduate students' own ethical standards to their perceptions of the standards held by most managers or supervisors. By maintaining a holier than thou ethical perception, new and future managers might rationalize their unethical behavior as being necessary for success in an unethical world. A prisoner's dilemma type problem can be said to exist when choosing an unethical behavior becomes each player's dominant strategy and the interaction of dominant behaviors is Pareto inferior. Dispelling the holier than thou perception may encourage students to revise their personal behavior payoffs such that the collective benefits that emanate from ethical conduct are favored and the prisoner's dilemma problem is converted into a coordination problem.
Existing models of strategic decision making typically assume that only the attributes of the currently played game need be considered when reaching a decision. The results presented in this article demonstrate that the so-called “cooperativeness” of the previously played prisoner’s dilemma games influence choices and predictions in the current prisoner’s dilemma game, which suggests that games are not considered independently. These effects involved reinforcement-based assimilation to the previous choices and also a perceptual contrast of the present game with preceding games, depending on the range and the rank of their cooperativeness. A. Parducci’s (1965) range frequency theory and H. Helson’s (1964) adaptation level theory are plausible theories of relative judgment of magnitude information, which could provide an account of these context effects.
This article argues that various deviations from the basic principles of the scientific ethos – primarily the appearance of pseudoscience in scientific communities – can be formulated and explained using specific models of game theory, such as the prisoner’s dilemma and the iterated prisoner’s dilemma. The article indirectly tackles the deontology of scientific work as well, in which it is assumed that there is no room for moral skepticism, let alone moral anti-realism, in the ethics of scientific communities. Namely, on the basis of the generally accepted dictum of scientific endeavor as the pursuit of knowledge exclusively for knowledge’s sake, scientifically »right« behavior is seen to be clearly defined and distinguishable from scientifically »wrong« behavior. After elucidating the basic principles of game theory, the article illustrates – by using imaginary and real cases, as well as some views from the philosophyof biology (the units of selection debate) – how this sort of reasoning could be applied in an analysis of the functioning of science.
Hamilton games-theoretic conflict model, which applies Maynard Smith's concept of evolutionarily stable strategy to the Prisoner's Dilemma, gives rise to an inconsistency between theoretical prescription and empirical results. Proposed resolutions of thisproblem are incongruent with the tenets of the models involved. The independent consistency of each model is restored, and the anomaly thereby circumvented, by a proof that no evolutionarily stable strategy exists in the Prisoner's Dilemma.
Biologists rely extensively on the iterated Prisoner's Dilemma game to model reciprocal altruism. After examining the informal conditions necessary for reciprocal altruism, I argue that formal games besides the standard iterated Prisoner's Dilemma meet these conditions. One alternate representation, the modified Prisoner's Dilemma game, removes a standard but unnecessary condition; the other game is what I call a Cook's Dilemma. We should explore these new models of reciprocal altruism because they predict different stability characteristics for various strategies; for instance, I show that strategies such as Tit-for-Tat have different stability dynamics in these alternate models.
The claim of neutrality made on behalf of “The Prisoner’s Dilemma” has been re-enforced by Kay Mathiesen’s creation of “TheAltruist’s Dilemma.” That this represents a neutral variation on “The Prisoner’s Dilemma” is compromised, however, by the failure of “The Altruist’s Dilemma” to deal with altruism in a full sense. The difference illustrates how, in contrast to its professed neutrality, “ThePrisoner’s Dilemma” involves very definite views of humanity and the nature of life itself. This is confirmed by Mathiesen’s misreading of O. Henry’s “The Gift of the Magi.”.
Experiments in which subjects play simultaneously several finite two-person prisoner's dilemma supergames with and without an outside option reveal that: (i) an attractive outside option enhances cooperation in the prisoner's dilemma game, (ii) if the payoff for mutual defection is negative, subjects' tendency to avoid losses leads them to cooperate; while this tendency makes them stick to mutual defection if its payoff is positive, (iii) subjects use probabilistic start and endeffect behavior.
Teaching economics has been shown to encourage students to defect in a prisoner's dilemma game. However, can ethics training reverse that effect and promote cooperation? We conducted an experiment to answer this question. We found that students who had the ethics module had higher rates of cooperation than students without the ethics module, even after controlling for communication and other factors expected to affect cooperation. We conclude that the teaching of ethics can mitigate the possible adverse incentives of the prisoner's dilemma, and, by implication, the adverse effects of economics and business training.
The Prisoner’s Dilemma is a popular device used by researchers to analyze such institutions as business and the modem corporation. This popularity is not deserved under a certain condition that is widespread in college education. If we, as management educators, take seriouslyour parts in preparing our students to participate in the institutions of a democratic society, then the Prisoner’s Dilemma-as clever a rhetoricaldevice as it is-is an unacceptable means to that end. By posing certain questions about the prisoners in the Prisoner’s Dilemma, I show that management educators have created a Prisoners Dilemma, whereby they intellectually imprison themselves and their students by continuingto appeal to the Prisoner’s Dilemma. These questions are not encouraged by the advocates of the Prisoner’s Dilemma.
Discussion of Kevin Gibson, Games students play: Incorporating the prisoner's dilemma in teaching business ethics
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