CHAPTER 11

Tacit Negotiations and Social Dilemmas

CHAPTER 11 Exhibit 11-1: Two Major Types of Negotiation Situations

11-2 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 Exhibit 11-2: The Prisoner

’

s Dilemma Louise Do not confess (remain silent) Do not confess (remain silent) Thelma Confess A T: 1 yr L: 1 yr B T: 0 yrs L: 15 yrs Confess C T: 15 yrs L: 0 yrs D T: 10 yrs L: 10 yrs NOTE: Entries represent prison term length: T = Thelma

’

s term length; L = Louise

’

s term length

Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11

Effectiveness of Tit-for-Tat

• • • • • • Not envious Nice Tough Forgiving Simple Extremely stable 11-4 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11

Recovering from Defection

• • • • • Make situational attributions One step at a time Getting even and catching up Make your decisions at the same time Superrationality 11-5 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 Social Dilemmas versus Prisoner’s Dilemmas

• Behavior more competitive in social dilemmas – Size difference – – – – Costs of defection spread out Social dilemmas are riskier Social dilemmas provide anonymity Less control over the situation 11-6 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 Exhibit 11-7: Different Kinds of Social Dilemmas

Internal (intraorganizational)

Taking

Resources (e.g., money, real estate, staffing) Budget fudging

Contributing

Committee work Recognition 11-7 External (interorganizational) Price competition Brand competition Overharvesting Pollution Paying taxes Public television Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 How to Build Cooperation in Social Dilemmas: Structural Strategies

• • • • • Align incentives Monitor behavior Regulation Privatization Tradable permits 11-8 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 How to Build Cooperation in Social Dilemmas: Psychological Strategies

11-9 • • • • • • Psychological contracts and the norm of commitment Superordinate goals Communication Personalize others Social sanctions Focus on benefits of cooperation Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 How to Encourage Cooperation When Parties Should Not Collude

• • • • • Keep your strategy simple Signal via actions Do not be the first to defect Focus on your own payoffs, not your payoffs relative to others Be sensitive to egocentric bias 11-10 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 Exhibit 11-9: Escalation of Commitment Perceived Utility of Current Course of Action Questionable or Negative Outcomes Reexamination of Current Course of Action Commitment to Current Course of Action Low Withdrawal and Assumption of Losses Perceived Utility of Withdrawal and/or Change High

11-11

Continued Failure

Source

: Adapted from Staw, B. M. & Ross, J.(1987). Behavior in escalatin situations: Antecedents, prototypes, and solutions. In L.L. Cummings & B.M. Straw (Eds.), Research in organizational behavior (Vol. 9, p.45). Greenwich, CT: Jai Press inc. Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11 Avoiding the Escalation of Commitment

• • • • • Set limits Avoid decision myopia Recognize sunk costs Diversify responsibility and authority Redefine the situation 11-12 Instructor ’ s Manual with Overheads to accompany

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CHAPTER 11

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• Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 11-13