An Application of Game Theory
In trying to understand the Japanese mentality to stay at work longer than what is necessary, I applied the Prisoner's Dilemma I learned in Economics to theorize my findings. I'm expecting a call from Stockholm any day now.
Game theory is a tool economists and other members of the theoretical sciences use as a sort of x-ray to understand the motives and incentives of individuals in a potentially cooperative environment. In my case, the X-axis on the table represents the incentive of the Supervisor working for any Japanese company, while the Y-axis represents that of the subordinates. Unlike most PH.D .-level economists I've been lucky enough to observe my application in a real life setting: The Staff Room of my school.
It is such: as a Supervisor, it is Japanese etiquette that you must stay late in order to show your underlings that you are a dedicated and hardworking member of the team. As a subordinate, it is frowned upon to leave the office before the Supervisor does. It is easy to see how we end up in a situation that is not good for anyone in my opinion.
Please assume all members in this example are self-interested, profit-maximizing and rational individuals.
Since both parties are self-interested, they will avoid risking their high status and they will choose to Stay at school. There is no strategic communication between the two regarding what time they should Leave, so therefore leaving will make them worse off--having a bad reputation for being perceived as disloyal to the team--if the other person happens to betray. If both parties could communicate with each other, everyone would be able to leave at 5 PM, the optimal output. This situation is unstable because both parties seek to improve their own positions by betraying one another, which means they have to stay until 12 AM, thus, a mutually bad outcome, a Nash Equilibrium.
I too am a profit-maximizing, self-interested individual, and since the blood running through my veins is not Japanese I am out the door when the bell rings at 3:15 PM.
Game theory is a tool economists and other members of the theoretical sciences use as a sort of x-ray to understand the motives and incentives of individuals in a potentially cooperative environment. In my case, the X-axis on the table represents the incentive of the Supervisor working for any Japanese company, while the Y-axis represents that of the subordinates. Unlike most PH.D .-level economists I've been lucky enough to observe my application in a real life setting: The Staff Room of my school.
It is such: as a Supervisor, it is Japanese etiquette that you must stay late in order to show your underlings that you are a dedicated and hardworking member of the team. As a subordinate, it is frowned upon to leave the office before the Supervisor does. It is easy to see how we end up in a situation that is not good for anyone in my opinion.
Please assume all members in this example are self-interested, profit-maximizing and rational individuals.
Since both parties are self-interested, they will avoid risking their high status and they will choose to Stay at school. There is no strategic communication between the two regarding what time they should Leave, so therefore leaving will make them worse off--having a bad reputation for being perceived as disloyal to the team--if the other person happens to betray. If both parties could communicate with each other, everyone would be able to leave at 5 PM, the optimal output. This situation is unstable because both parties seek to improve their own positions by betraying one another, which means they have to stay until 12 AM, thus, a mutually bad outcome, a Nash Equilibrium.
I too am a profit-maximizing, self-interested individual, and since the blood running through my veins is not Japanese I am out the door when the bell rings at 3:15 PM.
posted by Alex Cruz at
11:40 PM
1 Comments:
Keep up the good work.
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