Friday, August 22, 2008

Strange is the human mind!

There is this game which brings about the best and the worst in people. It seems to be a simple game of group decision making. A group of people is divided into 4 groups. These 4 groups are to seen as four different department of the same organisation.

Moving on, as a group, people have to decision. Here lies the interesting part. The group has to decide choose between an “X” and “Y” and needs to tell its decision secretly to the moderated. If all four groups choose “X”, each of them receives 1 Bn $ from the organisation; if 3 groups choose “X” and one chooses “Y”, then groups who have chosen “X” lose out 1 Bn $ each and “Y” group gets 3 Bn $; if 2 groups choose “X” and two groups choose “Y”, then groups who have chosen “X” lose out 2 Bn $ each and “Y” groups gets 2 Bn $ each; if a group chooses “X” and three groups choose “Y”, then group who has chosen “X” loses out 3 Bn $ and “Y” groups gets 1 Bn $ each; if all four groups choose “Y”, each of them gives 1 Bn $ from the organisation.

On the face of it, the first instinct is to choose a “Y”.

But here lies the difference between cooperation and competition. Everyone thinks to take a “Y” and end up losing but the best strategy is when all take “X”.

When I played this game for the first time, we were a group of 8 people and somehow instantly 3 of us realised that “X needs to be taken; though we also went through the choosing “Y” instantly syndrome. Nevertheless, the group saw the logic and we went ahead to put an “X”. As expected, we were the only one to put it and rest of the groups put a “Y”.

This game is played in several rounds and same was the scenario in the second and the third rounds too. At this time, each person from a group was given an option to negotiate with other group representatives. When all of us met outside, it was decided that everyone will put a “X” as this was the win-win situation. But alas, world is not utopian; some one team betrays. In the next round, another team breaks the promise and next 2 rounds see all 3 teams putting “Y”. We were consistently putting a “X”.

Here, the second chance to negotiate was given and now no one was willing to tell who put the first “Y”. Well, it was again decided that “X” will be put by all but its’ easy to break a promise and we went into the same loop :)

This was the first time I played this game when I was going through my induction in HCL Technologies way back in 2004.

Second time I got a chance to witness this game in FMS in our Organisational Behaviour class (I opted of the game as we were asked that people who have played can work as moderators). Here also, everyone knew that putting “X” is the best strategy but no one did it!

The third chance came my way 2 days back here in IIM Calcutta, again in the OB class; difference we just started the game and option to opt out was not given. Same story was repeated.

It just amazes me that how come a set of rational human beings knows what is best thing to do but still acts selfishly :D How come no one is able to see the larger interest and if is able to see, then why is not able to decision to take the same!

Some things are best left....unanswered !!!

4 comments:

  1. The problem is, at least in a class, that people don't realize the real world implications of things such as that game, or even game theory, for that matter.

    I believe that this is because of the compressed timelines and the in general I-don't-really-care attitude.

    However, in reality, every cartel and every gang, and every commodity (or service that has turned into a commodity) selling industry realizes this, and works together.

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