Zero Sum Games
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You should read the chapter on Sumo wrestling in the book called "Freakonomics." In one chapter Sumo wrestlers compete in a zero sum game for rank titles. They compete in 15 matches, if they have a winning record (8 wins or greater) they move up in rank and vice versa. How they begin to cooperate is the following. In the event that a fighter who has already won 8 fights has a match against a fighter that has only 1 fight left and is 7-7 the fighter who has already won 8 fights agrees to lose. This results in them both advacing in rank. the reason the 8+ wins fighter agrees to do this is because in the event that the situation is reversed the other fighter now "owes him" and will return the favor.
This mutualy beneficial outcome can exist because the 8+ wins fighter gets no benefit from his next win, while the other fighter loses greatly. However, it should be noted that if the two fighters meet again and they are both 7-7 there is no agreement and they both try to win, however, the agreement does carry over. [Manage messages]
Please could someone explain me is there a possibility of cooperation in zero sum games and what it is about? [View full text and thread]
|05/17/2005 07:31 AM by Beata; cooperative approach|