The Lessons Game Theory Offers in Dealing with Bullies

In an era marked by income inequality and cutthroat politics, individuals who possess significant power or employ intimidation tactics often appear to come out on top.

However, new research conducted at Dartmouth explores how being uncooperative can actually empower individuals in weaker positions within power dynamics, allowing for a more equal outcome and even causing some loss to their abusive counterparts.

These findings offer a novel application of game theory, a mathematical field focused on optimizing competitive strategies. This tool can potentially be used to level the playing field in labor negotiations, international relations, and even in the integration of cooperation within interconnected artificial intelligence systems like driverless cars.

Published in the journal PNAS Nexus, the study reexamines “zero-determinant strategies” in game theory, which were originally developed by renowned scientists William Press and the late Freeman Dyson. These strategies involve controlling situations to one’s advantage by decreasing cooperation, but still keeping the other party engaged. The key is to never be the first to concede during a stalemate, guaranteeing a larger share of the outcome. However, the research at Dartmouth reveals a vulnerability in these seemingly unbeatable scenarios.

The senior author, Feng Fu, an associate professor of mathematics, alongside the first author Xingru Chen, a Ph.D. recipient from Dartmouth, discovered an “unbending strategy” through mathematical modeling. This strategy involves resisting being taken advantage of and ultimately causes extortionists to lose more than their opponents. It also leads to a more equitable outcome as the overpowering party compromises in order to achieve the best payoff.

Chen, who is now an assistant professor at Beijing University of Posts and Telecommunications, explains, “Unbending players who choose not to be extorted can resist by refusing to fully cooperate. They also sacrifice part of their own payoff, but the extortioner loses even more.”

These types of scenarios are commonly observed in the real world, particularly in labor relations. Large corporations often exert pressure on suppliers and workers, demanding lower prices and threatening to replace or cut off their access to lucrative markets. However, strikes and protests can shift the power dynamics and lead to greater fairness and cooperation, such as when labor unions secure concessions from employers.

Although the power imbalance in these situations is never completely eliminated, the research at Dartmouth highlights how unbending players can still benefit by occasionally deviating from the expected behavior and undermining the extortionists’ pursuit of maximum payoff.

Fu suggests that the practical insight from their work is for weaker parties to stand their ground and resist being the first to compromise. This transforms the interaction into a game of ultimatums where extortionists are incentivized to be fairer and more cooperative in order to avoid lose-lose situations.

The implications of this research extend beyond theoretical understanding and can have a significant impact on real-world dynamics. It applies to a range of scenarios, from social equity and fair pay to the development of AI systems that promote cooperation, such as autonomous driving.

Mathematician Christian Hilbe, leader of the Dynamics of Social Behavior research group at the Max Planck Institute for Evolutionary Biology in Germany, praises the research and its contribution to the understanding of zero-determinant interactions. He highlights the significance of unbending strategies that encourage extortionate players to eventually reach fairer outcomes.

Evidence from behavioral research involving human participants indicates that the use of extortionate behaviors, especially in asymmetric situations, is prevalent. The targeted party often resists these behaviors, leading to costs for both parties involved.

 

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Denial of responsibility! TechCodex is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.