Cooperate or defend
Also called Trust and reputation.
When you will meet again, cooperation and reputation pay. In a one-off, protect yourself in the terms, but remember that few deals are truly one-off.
The Prisoner’s Dilemma shows the tension. Each side does better for itself by defecting, whatever the other does, yet both do better if both cooperate.
Repetition is what makes cooperation stable: if you expect to meet again and do not know when it will end, betrayal today costs you tomorrow.
Why it matters
Many situations are repeated games. What you do now changes how others treat you later.
Away from the game
Suppliers, neighbours and colleagues are repeated games. A one-time sale to a stranger is closer to a one-off, though reviews and referrals mean others may be watching.
Try it yourself
You will work with a supplier for years. They make a small mistake in your favour on an invoice. What pays best?
2 questions, a minute or two. Nothing to finish first.
Want more? Practise Cooperate or defend.
Play it out: the Prisoner's Dilemma lab, about five minutes against bots.
Learn and practise it
- Skill: Cooperate or defend