Pemberton’s Dilemma. Introduction:
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This exercise creates a situation in which you and the others will be making separate decisions about how to manage your firm. The outcomes (profits and losses) are determined not only by what you do, but also by a number of other factors such as the goals and motives that you and the other party have and the communication that takes place between you and them.
Debrief: Review the outcomes from summary table- what do we see?
a/Both high and positive scores-usually a strong cooperative pair
b/Both moderate scores-often a group that learned to cooperate
c/ Both low scores-usually a competitive pair
d/ Groups with large difference between scores-one group took advantage of the other
Two men suspected of committing a crime are arrested by the police and placed in separate cells. Each is told that he may either confess to the crime or remain silent. Each is told that if he confesses and his partner does not, the one who confesses turns state's evidence against the other and goes free while the other will go the jail for a long time (e.g., 10 years); if both confess, they both go to jail for a moderate term (e.g. 5 years); but, if neither confesses, then the police will have them found guilty of a lesser charge - - carrying concealed weapons - - and sent to jail for 1 year.
P2- 1 Year
P1 - 10 years
P2 – 10 Years
P2: - 5 Years
P1: - 5 Years