Social dilemma

Social dilemmas occur when the pursuit of the best possible individual interests of the players involved, this leads to a state that makes it worse than solutions, in which waives the best course of action to maximize individual interests. The mathematical game theory, according to social dilemmas as situations in which in comparison to the welfare optimum or to Pareto efficiency exists at least one deficient equilibrium. Thus, there are approximately in a social conflict situation a social dilemma, in which two different interest groups are each other's way and jointly worse off than in a cooperative solution.

The economic description of social dilemmas is that the interest -related activities of the groups to sub-optimal conditions leads. Of course, the description of the optimal ( desirable ) state is subject to the assessment. A job seeker rated tariff wages probably different than an employee. In clear-cut cases, you can apply the Pareto optimization. Based on this optimum can be defined:

• 3.1 Effect of communication

Terms dilemma and contribution dilemma

Another important aspect that can be differentiated whether the dilemma on the use of a common resource concerns ( use dilemma ) or to the contribution to the creation or maintenance of a good ( contribution dilemma / public goods dilemma ). These differ esp. in the opposite distribution of the positive and negative consequences of certain behaviors on individuals and society.

Terms dilemma

Nutzungsdilemmata can occur with common pool (see also tragedy of the commons ). While the profit is individualized, a possible damage to the goods is socialized. For example, the use of a public road is a motorist benefits individually. But moves in relation to the capacity of the road to a large number of vehicles, all in a traffic jam.

Nutzungsdilemmata can be prototypically illustrate the example of overfishing. The exploitation of a natural, self-healing resource ( eg fish stocks in the Atlantic ) are set by their regeneration speed limits and the resource can be seriously damaged due to excessive use ( over-fishing ). The profit for the individual fisherman is greater, the more catches of fishermen, while losses due to damage of the resource affect all fishermen. That is, the profit is individualized and falls immediately, while the damage of all is worn. Since - due to the social dilemma - are also damaged the fishermen, who are responsible for handling the resource and have less fished, there is no economic incentive for individual fishermen to behave responsibly. In addition to this dilemma comes a time trap, because the gain in resource overexploitation is immediate, while the loss occurs later. This temporal problem affects a lot of resources, even if they are used individually, so there is no social dilemma in the real sense. Often the time the case is connected with a considerable time delay of the negative consequences (often years or decades ) compared to the short-term positive returns. The losses in the future are discounted, so that intertemporal preference shifts take place.

Contribution dilemma

Beitragsdilemmata can occur with public goods. In this situation must be contributed to a Good ( do something, for example, give money ), so it can be created or maintained. That is, in this case, leads a small negative individual consequences (eg tax contribution, the license fee ) to a long -term positive consequences for the group ( providing the public good, for example, a street). This will freeloaders who have nothing but contribute to the enjoyment of the goods are favored.

This can be illustrated using the example of a firework. A firework is a public good and you can not prevent people also watch who have made no contribution to the fireworks. Since the potential audience know this, there is little incentive to contribute to the fireworks for them. In this manner, but hardly the cost would be covered for such an event; Private individuals or private companies would have no incentive to hold a fireworks display. In this way, there would probably be no fireworks event. This dilemma is considered by many as a justification for market intervention by the public sector.

See also: Economic Well # types of goods according to excludability and rivalry

Historical examples

Prominent historical examples are eg the complete deforestation of almost all forests in Greece or Ireland. A recent example is driving a car. If I use a car, I come quickly and easily to my destination. The benefits strikes me as a driver to immediately. However, during each trip created noise and exhaust fumes. However, these costs also make pedestrians and residents, not only myself as a car driver. The damage also arises only when many use the car. It follows that the individual has little incentive to refrain from the harmful behavior, as it is only very small contribution to the total damage. One speaks here of negative externalities.

Overcoming

Ways to overcome a social dilemma, provide regulations and internalization by the legislature, such as the Emissions Trading, or the communication between the actors, in the case of overfishing eg international agreements that limit the number of fish caught. In Beitragsdilemmata the state can provide the public goods and finance from tax revenues.

Effect of communication

In the experiment of Orbell, van de Kragt and Dawes ( 1988) has offered the following game: 7 participants will receive $ 6 each, which they can either keep or donate the other participants. In this case, your donation will be doubled, so that any other participant will receive $ 2. The more money you keep, the less will be so paid. To achieve the maximum benefit, an individual would have to keep his money, while everyone else donate their share. Result: no possibility of collusion, there were only 38% who donated their money, with prior discussion 79%. As an explanation, the researchers call for an obligation by assuring the public to donate to the other a project funded by the discussion of sense of community.

Game Theoretical examples

Game Theoretical examples of social dilemmas are listed below:

• Prisoner's Dilemma
• Iceman - on - beach - problem
• Braess 's Paradox