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Game Theory and Leadership
Game Theory Models
Game theory models individual behavior as though two or more people are participating in a game. It is about social interactions, bargaining and negotiating on common interests.
A player anticipates the options and tries to influence the decisions of others to achieve their own goals.
Prisoner Dilemma
Game theory, simply, states that players may not trust one another enough to co-operate, or may see greater gains for themselves in non-cooperation, even if the outcome for all players would be better if they co-operated.
One example is the prisoner's dilemma, in which two players are suspect in crime. Each suspect may either confess or remain silent. They know the consequences of their actions. So, if both suspects protect each other by staying quiet, the police have only enough evidence to put each in prison for one year. But, each suspect is offered a deal. If one confesses and the other suspect does not, the confessor will be rewarded with freedom, while the tight-lipped suspect will get five years in prison. If both confess, both get three years in prison.
Stag Hunt Game
The stag hunt game is different as it encourages the players to share. A group of male hunters are tracking a large stag. If all the hunters work together, they can kill the stag and all eat well. If they do not co-operate they will not catch the stag, and will go hungry. As they wait, a hare is seen on the path. If one of the hunters leaps out and kill the hare he will have a small meal for himself but the trap for the stag will be wasted and the others will starve.
Tips for Co-operative Leadership
Working in collaboration is complex and requires strong leadership.
- Be knowledgeable about your partners, their structures, strategies, needs and decision making systems
- Be flexible adjusting your individual strategies or objectives to meet the overall aim of the partnership
- Develop clear lines of communication and decision-making between all the partners
- Share the power equally between the parties in the partnership
- Get agreement on the operation and benefits of the partnership
- Consider your role in the partnership and your motives for engaging with it