Imagine you and a friend tried to rob a bank and we’re caught by the police. The cops keep you in different cells and give both of you two options: rat you friend out (Confess), or don’t (Keep Quiet) Since the two of you have two options, there are four possible outcomes: you both stay silent (Mutual Cooperation), you both rat on each other (Mutual Defection), your friend rats and you stay silent (Sucker’s Payoff), or you rat and your friend stays silent. Each outcome comes with a different result for both you and your partner which you can see in the diagram below:
What do you do? The best outcome for both of you together, is for both of you to Keep Quiet. However the best outcome for each of you individually is to Confess. No matter what your partner does, there is a incentive for you to rat on him/her. If your partner confesses, you can get off free. If you partner rats, you better rat too so you don’t get caught as a sucker.
This is a game called “Prisoner’s Dilemma.” It represents many different scenarios in society where there is a collectively beneficial outcome that is different from individual incentive. Think about it. The whole world would be better if we shared all our money wouldn’t it? There would be no poverty and more than enough to go around. However if you shared all your money, and everyone else suddenly decided to not share, then you’d be the broke one. Therefore, in life, everyone goes with the “Confess” option.
This is called the “Nash Equilibrium,” named after John Nash, Russell Crowe’s character in “A Beautiful Mind.” The Nash Equilibrium is where neither person has an reason to change, even if it’s not the best outcome for the group. We find ourselves in Nash Equilbria, rather than then best outcome because we are afraid to be vulnerable. However, vulnerability is the key to the greater good. For instance, the only way you’d feel comfortable Keeping Quiet in the Prisoner’s Dilemma if you KNEW your partner was doing the same thing.
In the next post we’ll speak more about the Power of Vulnerability. Vulnerability is the antidote to the Prisoner’s Dilemma. Without it, you’ll always be a Prisoner.