Game Theory, Prisoner's Dilemma, and the Commons
1. Game Theory and Sustainability
Definition: A tool used in economics and behavioral sciences to study strategic decision-making among individuals or groups.
Relevance to Sustainability: Helps explain why people overuse shared resources (commons) even when it is against long-term collective interests.
2. The Prisoner’s Dilemma
Scenario: Two prisoners are interrogated separately. Their choices (cooperate/stay silent or betray/confess) lead to different outcomes:
- Both cooperate (stay silent): Light punishment for both.
- One betrays, one cooperates: Betrayer goes free; cooperator gets heavy sentence.
- Both betray: Both receive medium punishment.
Payoff Matrix Representation:
| Partner Cooperates | Partner Betrays | |
|---|---|---|
| You Cooperate | Light sentence (e.g., 1 year each) | You get heavy sentence (e.g., 3 years); partner goes free |
| You Betray | You go free; partner gets heavy sentence | Medium sentence (e.g., 2 years each) |
Link to Commons Dilemma: In resource contexts (water, forests, fisheries), “betrayal” equals overuse for selfish gain. If everyone overuses, the system collapses — mirroring the Tragedy of the Commons.
3. Key Insights from the Dilemma
- Lack of Trust: When users don’t trust others to cooperate, they over-extract, leading to collective failure.
- Need for Rules and Cooperation: Without mechanisms to align individual and group interests (e.g., regulation, transparency, trust), even well-intentioned individuals can cause environmental collapse.
4. Types of Commons
Commons extend beyond natural resources to include:
| Type | Examples |
|---|---|
| Natural Commons | Forests, fisheries, groundwater, atmosphere |
| Cultural Commons | Music, literature, art (e.g., Manganiar tribe’s tune used without credit in Nimbooda song) |
| Digital Commons | Open-source software, free knowledge databases |
| Urban Commons | Parks, public spaces, wetlands |
| Global Commons | Oceans, climate systems |
5. Recap of Module 3 Key Themes
- Lifecycle Approach: Understanding a product’s journey from raw material to disposal reveals hidden environmental costs.
- Externalities: Side effects of economic activities (positive, e.g., vaccination; negative, e.g., pollution). Often ignored by markets.
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Types of Goods:
- Private goods (rivalrous, excludable, e.g., pizza)
- Public goods (non-rivalrous, non-excludable, e.g., streetlights)
- Common resources (rivalrous, non-excludable, e.g., ponds, forests) → High risk of overuse.
- Tragedy of the Commons: Overuse of shared resources due to short-term self-interest (e.g., overfishing, urban wetland destruction).
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Solutions:
- Private: Negotiation, social norms, contracts (require trust/cooperation).
- Public: Government laws, taxes, public services.
- Community: Awareness, cooperation, governance (e.g., Poromboke song raising ecological awareness).
Exam Tip
Focus on how the Prisoner’s Dilemma models the conflict between individual and collective rationality in commons management. Be able to interpret the payoff matrix and apply it to real-world examples like groundwater depletion or deforestation. Understand the various types of commons (natural, cultural, digital) and remember that solutions require a mix of trust, cooperation, rules, and governance mechanisms. Use case studies (e.g., Kashmir floods, Chennai wetlands) to illustrate theoretical concepts.
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