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Thinking and Deciding

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448 SOCIAL DILEMMAS: COOPERATION VERSUS DEFECTION<br />

why should I be the only one to obey the “Keep Off the Grass” sign? I would only<br />

decrease net benefit by hurting myself <strong>and</strong> helping nobody. (Let us put aside such<br />

arguments as the fact that by being seen to walk around the grass I might encourage<br />

others to do likewise. We have not counted such precedent setting as an outcome in<br />

our analysis, <strong>and</strong> if we did count it, Figure 18.2 would look different.)<br />

Schelling (1978, p. 236) gives another example of the conflict between the cooperative<br />

theory <strong>and</strong> utility maximization. In summer, it is best for everyone if everyone<br />

is on daylight saving time. By the cooperative theory, each of us ought to live according<br />

to daylight saving time, even if everyone else around us is on st<strong>and</strong>ard time.<br />

This example shows, again, that the effect of what we do depends on what others do.<br />

In this case, it is best to conform.<br />

The self-interest theory says that I should always do what is best for me <strong>and</strong><br />

ignore everyone else. Therefore I should always walk on the grass. Two different<br />

forms of this theory are often confused. One form says that we should not care about<br />

other people. Hardly anyone seriously holds this theory. The second form says that<br />

it is best for everyone if individuals look out for their own interest. This theory is, in<br />

fact, taken seriously by many as a moral theory, because it is concerned with what<br />

is best for everyone. This theory seems to be the underlying justification for various<br />

defenses of free enterprise, for example. It is often argued that the best society for<br />

everyone is a society in which all individuals pursue their own self-interest.<br />

The problem with this theory is that it essentially denies the existence of social<br />

dilemmas. We may define such dilemmas as cases in which pursuit of narrow selfinterest<br />

is not best for everyone. (We shall make this definition more precise later,<br />

but it accounts for all the cases we have encountered so far, <strong>and</strong> it is consistent both<br />

with the definition we shall give <strong>and</strong> with Dawes’s definition.) If there are any such<br />

cases — <strong>and</strong> there surely are many — this theory simply ignores the problem that<br />

they create; it gives up on the problem we are trying to solve. As a normative theory,<br />

it amounts to saying that morality makes no claims on individual behavior. (It might<br />

be more defensible as a prescriptive theory, but later I shall argue against that too.)<br />

If we apply utilitarianism to the grass-walking problem, it says that I should<br />

cooperate as long as the benefit to others from doing so is greater than the cost to<br />

me. Therefore, I should cooperate when the number of other cooperators is about<br />

50%, but not at either end of the percentage range. At the high end, I may not know<br />

exactly how many cooperators there are; it would be difficult to determine whether I<br />

will be the critical person who starts the decline of the grass. It seems sensible here to<br />

compute expected utility, given my personal probabilities for the different numbers<br />

of cooperators.<br />

Utilitarianism seems to some to be too dem<strong>and</strong>ing. It seems to require people to<br />

give away money whenever someone else could use the money more than they, for<br />

example. (The cooperative theory has the same problem.) But it may not make such<br />

impossible dem<strong>and</strong>s when it is taken as a theory of an entire life plan rather than<br />

individual acts. People who always give their money away may not do as much good<br />

in the long run as people who develop their talents in a way that is helpful to others<br />

<strong>and</strong> then put their talents to use, maintaining a lifestyle that allows them to do this

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