Deming and Cooperation
ANALYZING DEMING IN THE CONTEXT OF GAME THEORY
Abstract
The objective of formulating business decisions within the context of game theory is to generate “wins” with no negative consequences in a multilevel, multiplayer business environment. This can be easily done with cooperation between corporations. When both players “win”, neither feels the need to retaliate against the other and the most total good is created. However, such cooperation is often impossible or not in one’s best interest. The Deming based approach would be to change the rules of the game until a system is implemented in which all players along the supply chain are working together towards a common goal. Winning in business and in life necessitates changes to how one thinks about cooperation and reward.
This paper will discuss the moral and financial implications of cooperation and competition in business as demonstrated in game theory. One may say that there is a moral imperative to treat other well and not benefit at another’s expense. This directive is certainly well meaning, however, it may interfere with the best possible good for a person. At what point, if ever, does the moral imperative of fair play and cooperation detract from financial gain? It would be nice to think that there will be in all situations a benefit to cooperation as opposed to competition, but that has historically been shown not to be so. One needs a realistic rather than idealistic model to which he can adhere; otherwise, such directives lose their empirical necessity and become nothing more than academic speculation. Game theory sets forth a series of parameters for persons to consider when trying to maximize one’s personal benefit while making sure that the long term success of a company and a society are ensured. Game Theory Introduction
Game theory states that rational players will act rationally in their best interest. In any situation where there are several possible future outcomes,
Abstract
The objective of formulating business decisions within the context of game theory is to generate “wins” with no negative consequences in a multilevel, multiplayer business environment. This can be easily done with cooperation between corporations. When both players “win”, neither feels the need to retaliate against the other and the most total good is created. However, such cooperation is often impossible or not in one’s best interest. The Deming based approach would be to change the rules of the game until a system is implemented in which all players along the supply chain are working together towards a common goal. Winning in business and in life necessitates changes to how one thinks about cooperation and reward.
This paper will discuss the moral and financial implications of cooperation and competition in business as demonstrated in game theory. One may say that there is a moral imperative to treat other well and not benefit at another’s expense. This directive is certainly well meaning, however, it may interfere with the best possible good for a person. At what point, if ever, does the moral imperative of fair play and cooperation detract from financial gain? It would be nice to think that there will be in all situations a benefit to cooperation as opposed to competition, but that has historically been shown not to be so. One needs a realistic rather than idealistic model to which he can adhere; otherwise, such directives lose their empirical necessity and become nothing more than academic speculation. Game theory sets forth a series of parameters for persons to consider when trying to maximize one’s personal benefit while making sure that the long term success of a company and a society are ensured. Game Theory Introduction
Game theory states that rational players will act rationally in their best interest. In any situation where there are several possible future outcomes,