This document discusses tacit negotiations and social dilemmas. It begins by distinguishing between cooperative games, which involve explicit contracts and mutual understanding, and non-cooperative games, which feature tacit contracts and uncertainty about others' actions. It then examines the prisoner's dilemma, in which two individuals may choose to cooperate or defect, and how this relates to social dilemmas involving multiple stakeholders. Specific examples are provided, such as a price war between three cell phone companies in Egypt, to illustrate cooperative and non-cooperative strategies in different scenarios.

1. Tacit Negotiations & Social
Dilemmas
By Alaa Abdul Hameed6/21/13

2. ONTARGET
Prisoner Dilemma Types
Agenda & Table of content
Cooperative Games VS Non Cooperative Games
Prisoner Dilemma and Social Dilemma
Prisoner Dilemma Strategies
Social Dilemma Types
Social Dilemma Strategies

3. ONTARGET
Cooperative Games
Contract is explicit
Mutual understanding
People usually come to the table
Voluntarily
Non Cooperative Games
Contract is Tacit
People don’t know what the other
will do
People usually pulled to the
negotiation
Cooperative Games VS Non Cooperative Games
John Nash

4. ONTARGET
Mobinil, Vodafone & Etisalat Rating War
• By nine years of controlling the market, Mobinil and
Vodafone got through a cooperative agreement that they
would settle the market in a level of around 40 pt per
min rate.
• By the first of May 2007 a third negotiator came on the
table claiming for his slice of the pie which was Etisalat.
• Etisalat came to the market with a Growth strategy that
is targeting the Market Share; so they adopted to go
through a price war against the other Market
Negotiators, which was Mobinil & Vodafone.
• This non cooperative approach leaded to an enormous
change in the price level per min rating.
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5. ONTARGET
Click icon to add pictuPrisoner Dilemma and Social Dilemma
Prisoner Dilemma is the kind of dilemmas that been reasoned of
an non cooperative agreements , this kind of dilemmas was
stamped by prisoner because it’s affect only the interactive 2
persons of entities in the negotiation.
while the social dilemmas was stamped as social because it’s
affect will be upon multiple persons or the whole society
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6. ONTARGET
Prisoner Dilemma
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7. ONTARGET
One Shot
Decision
Repeated
interaction
for infinite
number of
trails
Repeated
interaction
for infinite
number of
trails
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Thelma
& Louise
Backward induction,
singling opponents
moves Election or
Rating example
Preferably
cooperative,
Forward thinking
logic
Parliament election
previously
Prisoner Dilemma Types

8. ONTARGET
Prisoner Dilemma Strategies
Winner is loser
First move is a cooperative Move then follow
the opponent moves
Draw Backs: never beat the opponent
Recovering from defection
Make your moves according to your
opponent moves
You have to make your decision at the same
time your opponent do
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Tit For Tat Strategy
Cell Phone Operators
moves application on
both strategies

9. ONTARGET
Social Dilemma
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10. ONTARGET
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Social Dilemmas is always stamped as a non Cooperative
negotiation as foot it’s characteristics:
• Harder communication as large number of
stakeholders.
• Lesser control over the negotiation.
• Cost of spoilage will be separated between the
negotiators.
• The originator of the defection will be anonymous.
The most common problem in the social dilemmas is the
Tragedy of commons
i.e. OPEC Organization
Social Dilemma

11. ONTARGET
Collective Traps
Using pool’s
resources
Overuse to the
resources
Collective Fences
Giving resources to the
pool
Idling of some
participants will lead to
more load on the rest
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Social Dilemma Types

12. ONTARGET
Thank You