Plan for Today: Neoliberal Institutionalism

1. Plan for Today:Neoliberal Institutionalism Understanding structure and expected outcomes in Prisoner’s Dilemma game. Brainstorm possible modifications to lead to more cooperation in PD game.

2. Neoliberal InstitutionalismAn Exemplary Game: The Prisoner’s Dilemma • Shows how suboptimal outcomes can happen when each individual acts in own self-interest. • Illustration of imperfect outcomes in situations of uncertainty and incomplete information (e.g. international anarchy). • Then show ways situations can be mitigated by modifying conditions of the game.

3. Neoliberal InstitutionalismAn Exemplary Game: The Prisoner’s Dilemma • Conditions: • In simplest form, involves 2 players. • Each player self-interested, self-reliant utility-maximizer. • Only one move for each player, simultaneously. • Players cannot consult each other for information or seek outside help.

4. Class Activity“Student’s Dilemma”

5. Prisoner’s DilemmaNarrative Outcomes

6. Prisoner’s DilemmaNumerical Payoffs(refer to Lipson for more details)

7. Outcome of Prisoner’s Dilemma • Rational players would choose to defect to avoid worst outcome. • Dominant strategy therefore suboptimal: both could gain more by cooperating. • Each actor pursuing own self-interests leads to undesirable outcome for all.

8. Small Group Discussion • Think as a group of 2-3 ideas of modifications to the PD game that might lead to greater cooperation. (5 minutes) • But still keep: • Actors as selfish utility-maximizers. • Players simultaneously deciding, so each can’t know what other will choose. • Payoff values for each possible outcome. • Leader report group proposals to class.