Google:UltimatumGame
Another insight from the book "The Wisdom of Crowds" by the author James Surowiecky comes from the empirical tested outcomes of this game, "... perhaps the most-well-known experiment in behavioral economics"'' .
In this game there are two players, the proposer p and the responder r and an amount of sharable money m, say m=10$, that can only be gained, if p and r come to an agreement.
The proposer p now can offer an arbitrary split of the money m=mp+mr, with 0<=mp<=m, which the responder can accept or decline.
If r accepts, then p gets mp dollars and r gets mr=m-mp dollars. If r declines, then both get mp=mr=0, i.e. zero dollars.
Example
If p (being socially very insensible) offers a split of (9$,1$), with the intention to keep mp=9$ for him-/herself, leaving the shabby mr=1$ to the responder, then experience shows, that usually p is punished by the responder of rejecting the offer, where at the same time the responder r is punishing her/himself with losing the opportunity to earn one dollar.
The surest bet for p to come to an agreement is offering an even split of (5$, 5$).
This game can be easily generalized to
- a dynamical multiplayer team , i.e. n>2 players p1,..,pn, where the playing team is open to new members (Open Invitation To Participate)
- iterated rounds
- multiple projects, where everyone can be a proposer, based on their initial buy of a domain to share, setting up a new m to share
- dynamical money pool m that increases in value by transparent and interacting communication of the partners and interested third parties (MarketsAreConversations)
Application ==
To apply this basic insight to SocialDomaining as ExtremeOpenBusiness, here are some additional considerations:
- m can be seen as the additional money, that can be gained by synergic actions, e.g. p1,..,pn increasing the
- conceptional value of a shared domain for the targeted buyer(s)
- page rank of Google, and at the same time
- building a network of demonstrable mutual trust by open transactions.
Invitation to Conversation and Participation
FridemarPache: Yes, this is a real economic game with real money and real business opportunities, all transactions made visible and open; besides that, it is a real thing to reflect on it.
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