"Real World" Examples of Social Dilemmas

[This chapter is in work and is to be expanded considerably as time permits.]

• Elections

  There is some cost to you in voting. While it may be small for some, it is significant for others. Some people go to a great deal of effort just to vote. What return do they get for this effort? Zilch! A single vote can only impact an election when there is a tie, which has essentially zero chance of happening in a state or national election. The typical response to this is "Well, what if everyone did that?" Of course, that would be a disaster. But we are not talking about everyone, we are talking about ONE individual.

  Any activity, if "everyone does it", is likely to have a major impact on society. The next time you buy or sell a few shares of stock, consider "What if everyone does it?". What if everyone flushed the commode at the same time you do? Etc.

  But like the Prisoner's Dilemma, if you do "cooperate" by voting and everyone else does, society as a whole is greatly benefited. On the other hand if everyone declines to vote -- which rationally they should -- we have a disaster. Yet, since an individual vote has no impact, each individual has a greater net reward by not voting! That is the paradox.

  Another consequence of the VP is that since voters know that their individual vote is highly unlikely to influence the election outcome, there is little incentive to become knowledgeable about the political candidates and issues [Downs, 1957; Green and Shipiro, Investor's Business Daily].

• Water Supply in Los Angeles

  Let's say you live in Los Angeles and one day the city announces that, due to a water shortage, everyone should cut back on consumption. In particular, the city says that you should only shower once a week. Now you have been working in the garden and you really would like a shower! What are your options? If you don't take a shower, the water situation gets no worse but you are uncomfortable and stink like a clogged sewer. If you do take a shower there is great benefit to you but the small amount of water that you consume is insignificant compared to the total in the reservoir and, in fact, no one will notice. Put another way, your consumption when spread over the millions of residents in Los Angeles is of no consequence.

• Public Housing Deterioration

  While the government does employ a few Rocket Scientists, they apparantly do not let them get near any of their social programs! Further, it is a known fact that the government spends billions on "Social Studies" through grants to Universities, etc. Apparently, they don't ever actually look at any of these studies. If they did, they would know that the structure of the "Public Housing" is a Social Dilemma and, therefore, doomed to failure.

  Every person in a housing project that has any sense at all knows that they can do little personally to turn around the neglect, deterioration, and filthy conditions of their community. Sure, they can clean up around their own apartment but that will be of no consequence for the whole project. It is very discouraging. The system attracts freeriders in droves. Social scientists have shown many times that "cooperating" individuals cannot survive or take over in a group of freeriders.

  So, each person has little to gain and nothing to lose by freeloading. An important point to note: the freerider problem is a serious problem even when the common goods being shared are local, but if the common goods are provided by an external source (the government) the problem is exacerbated many times over!

• Insurance

  The insurance situation is "Tragedy of the Commons" situation that we all abuse. Given the opportunity, I will take more from the insurance company than I would if I were having to pay for the service -- much more. And why not? Even if I don't abuse my insurance, even if I skip the expensive brain scans for my annoying headache, nothing will change in the insurance industry. In fact, if I decide to sue my neighbor -- because I know she has insurance -- over a trivial accident, I (and my lawyer) will be greatly rewarded and the cost to all the contributers to the insurance is insignificant. You see the problem.

• Lawsuits

• The Internet

• Medical

• Welfare

• Local Problems shared Nationally

  If the problems of a local government (state, city, etc.) become the responsibility of the contry in total, then we have the VP problem again.

• The Littering Problem

  What does one more piece of litter do to an already huge pile?

  I'll pick up my litter but not the other guy's

• Cutting off my nose to spite my face

  Should I refuse to buy shoes made in China that I can get much cheaper than USA manufactured shoes even though I dislike China's human rights policy? Should I avoid buying Willie Nelson's albums because he is an alleged tax cheat even though I really like his music? Should I avoid buying products at Walmart's, that save me a lot of money, because some clerk got nasty with me once?

  To take any of these actions causes me to lose the direct and substantial benefits while having no significant impact on correcting the problems I dislike. I will keep buying Willie's albums.

• Arbitrary Break Points

  Break points are another baffling example of the conflict between the general and the specific, the whole and the atom. In rules, in government, in games and in our personal budget, often levels have to be set that are arbitrary. How much can I allow myself to spend on entertainment each month? $200? How about $201? Why $200?

  The so-called "poverty level", blindly followed and reported by the media (as if it were as absolute as the value of the gravitational constant!), is an arbitrary level. Yet it impacts thousands of lives. Let us say the government determines that the "poverty level" is $10,000 and you just happen to have an income of $10,001. What does the social worker do if you still ask for the "below the poverty level" benefits? She has to reject you! Buy why can't she bend the rules a little and allow you the benefits anyway? Well if she did, then she would have to consider the next person at $10,002 -- and so on.

• Hand Clapping at a Concert

  Hand clapping at a rally or concert provides a simple (if possibly silly) example that clearly illustrates the VP. The question to be answered is whether the person on the stage can tell whether one individual claps or not. It seems apparent that they could not but this could be easily confirmed by experiment for those who doubt. If I conclude that my clapping cannot be heard, then why do I clap? Direct pressure from those around me? Feels good inside?

  Actually, while this example illustrates the insignificance of one "vote", it may not be a paradox if the person is directly rewarded by the good feelings from clapping.

• Games

  • Hofstadter's Games

    (TBD)

  • Bidder Game

    Who ever bids highest wins unless a tie. If tie, then go to next highest bidder. If all tie, replay the game.

  • Other Games

    (TBD)

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