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Not All Games: Putting Game Theory to Work - Part 2

In our previous post, we discussed game theory and highlighted 5 conclusions from Axelrod's work on the Evolution of Cooperation which help promote cooperative environments:

1) Enlarge the shadow of the future - make future interactions more frequent and likely and important

2) Change the payoffs - give incentives to value cooperation more than non-cooperation.

3) Teach people to care about each other

4) Teach reciprocity

5) Improve recognition abilities

We will focus on several of these as ways to foster cooperative and collaborative environments.

Enlarge the Shadow of the Future

Collaboration thrives in environments where current behavior is heavily weighted by future prospects of interaction. Keeping units small (see the"magic" of the number 150 in a previous post) is key to encouraging frequent and repeat interactions between individuals. Social networking software can also aid in bringing people together more frequently because the costs of interaction are reduced, and it is also easier t find the "right people" to maximize the benefit of the interaction.

Change the Payoffs

Can leaders make it more attractive to collaborate than to not? Certainly, and we are not talking about monetary awards for "most wiki entries" or "most prolific blogger." Rather, ingrain collaboration in the culture by sharing stories of effective collaboration, giving public recognition, and promoting known collaborators into positions of leadership. Again, social networking software can aid in sharing the story of the power of collaboration and increase the implicit value of these types of interactions.

Improve Recognition Capabilities

In game theory, cooperation is predicated on the ability of the "players" to recognize each other between "games" (iterations), and see and understand their behavior so that they can react to it appropriately at the next iteration. Transparency and reputation management from social networking systems can aid tremendously in this vein by reducing uncertainty about the past behavior of individuals. And coming full circle, reputation management also serves to enlarge the shadow of the future by increasing the "durability" of interactions, i.e capturing the behaviors in a system that is open for others to see.

The bottom line is that collaborative environments can be created and nurtured through attention to factors such as those outlined above. And such factors as enlarging the shadow of the future, changing the payoffs, and improving recognition capabilities can be enhanced through the judicious application of social networking capabilities.

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