Tragedy of the Commons: An Exercise Using Clickers to Illustrate and Teach a Key Concept in Negotiations Page 373 - Developments in Business Simulation and Experiential Learning, volume 38, 2011 ABSTRACT The concept of “Tragedy of the Commons” is crucial to understanding one of the key dilemmas central to many negotiations. This exercise is a simple but powerful way to experience the concept. The efficacy of using clickers for such an exercise is a new area of exploration. This paper looks at using clickers to play this game which illustrates why it is difficult to be an integrative (or win-win) negotia- tor and why there is much pressure to “cheat” or become a freeloader. DESCRIPTION OF THE GAME In a course on Negotiation the concept of “Tragedy of the Commons” is crucial to understanding one of the key dilemmas central to many negotiations-whether to compete or cooperate, or whether to consider the negotiation a dis- tributive or integrative negotiation. This exercise is a sim- ple but powerful way to experience the concept. Disclosure: Exercises focusing on “tragedy of the commons” are typically variations of the same basic exer- cise as this one is. To this degree, this exercise is not par- ticularly original. However exploring the efficacy of click- ers for such an exercise is a new area of exploration. For this exercise to work, behaviors have to be “private;” people will often behave differently if they feel others are observing their behavior. The use of “clickers” provides an effective way for people to react privately. In the exercise, people are asked to choose (using clickers) either “1” or “2”. For each “1” chosen, everyone in the room will receive $1 (or some other reward). In ad- dition, if the individual chooses “2” this person will receive an additional “5”. In other words, everyone will receive a “public” benefit of all the cooperators. Cooperators are ones that choose a “1.” In addition, those who choose “2” can be considered “freeloaders,” since they receive the pub- lic good and then claim the private benefit by choosing “2”. If there are 20 people in the room and 16 choose “1” and 4 choose “2”, everyone will receive $16 (the public good) and in addition, four people will receive an extra $5. If everyone cooperated, everyone would receive $20. The participants are not told there will be a second round, but there will be. Typically the number of “freeloaders” increases as many cooperators feel they are suckers. This game illustrates why it is difficult to be an inte- grative (or win-win) negotiator and why there is much pres- sure to “cheat” or become a freeloader. MEASURING LEARNING On a simple level Clickers can be used to test whether participants understand the concept of “tragedy of the com- mons.” More critically, this exercise is followed up by a negotiation role-play in which the cooperation/competition dilemma is a major issue. The discussion following the role play highlights and reinforces the relationship between a typical negotiation which they just engaged in and the concept of “tragedy of the commons.” Finally, I often start a class with a short exercise such as this “tragedy” exercise. Many of these exercises are variations of this one (or a prisoner’s dilemma exercise) although students don’t always recognize the connection. Doing other exercises in subsequent weeks allows an as- sessment of whether students not only understand the con- cept but can act on it. TIMING Either 30 or 60 minutes PARTICIPANTS Any number can play although I only have 50 clickers LESSONS  The concept “Tragedy of the Commons”  Distributive vs. Integrative Negotiations….cooperative vs. competitive negotiations  The challenges of being an Integrative or win-win ne- gotiator  The pressures to be a freeloader or cheater  Use of clickers for a class exercise  Shows that on strictly personal gain, the optimal is for an individual to be the only cheater in the room, or that everyone cooperates except you. However, this strat- egy totally backfires if everyone chooses it. TRAGEDY OF THE COMMONS: AN EXERCISE USING CLICKERS TO ILLUSTRATE AND TEACH A KEY CONCEPT IN NEGOTIATIONS Edward Wertheim Northeastern University e.wertheim@neu.edu mailto:e.wertheim@neu.edu Page 374 - Developments in Business Simulation and Experiential Learning, volume 38, 2011  This has implications not only for personal nego- tiations but national and international issues (e.g. paying income taxes, climate control, nuclear dis- armament, etc.) The problem of “freeloading” is a problem in countless situations including nations trying to cooperate in such ar- eas as nuclear disarmament and countering global warning. There is always pressure to pursue private gain at public cost. I have tried this exercise in a number of international settings, the latest being in Vietnam in January 2011. The proportion of “cheaters” or “freeloaders” was about the same as in American settings. The discussion among Viet- namese business men and women, convinced me how pow- erful this topic is and how well this simple exercise brings out this issue that is central to most negotiations. CLASSROOM MANAGEMENT When used in a course, the exercise itself takes 15-20 minutes including a discussion. Table of Contents Volume 38, 2011 Simulated Tabletop Exercise for Risk Management - Anti Bio-terrorism Scenario Simulated Tabletop Exercise From Business Games to Simulations - Simuworlds & Microworlds Demand Equation Redux: The Design and Functionality of the Gold/Pray Model in Computerized Business Simulations Managing Client-Based Learning: Insights from Successful Teaching Project Courses in Marketing Tracking Forecast Error Type, Frequency and Magnitude with the Forecast Error Package Responding to Facilitate Collaboration Simulating Sudden Change and the Value of Timely Information Managing Human Resources Simulation A Study on Collectivism and Group Decision-Making: An International Comparison of Japan, China, and Russia Using a Gaming Simulation The Use of Management Games in the Management Research Agenda Gaming On-Line: A Simulation Application Positioning and Performance in Simulated Networks Supply Chain Management: A Simulation Application Simulation as a Teaching Method in Strategic Management Distance Studies Entrepreneurship: A Game of Risk and Reward Phase II: The Start-Up Return to the Paradise Islands: From Confrontation to Cooperation Effect on Market Performance of Displaying Supply and Demand Curves in a Business Simulation Appreciating Complexity: The Chief of Staff of the Army Game Managing Organizations: Experiential MBA Course Teaches Alternatives to the Machine Model A Simulation Model for Analyzing the Night-Time Emergency Health Care System in Japan The Continuing Evoluation of Assessing Project Management as an Academic Learning Outcome (ALO) Should College Instructors Change Their Teaching Styles to Meet the Millenial Student? The Mouse Game and its Effects on Team Interdependence Learning from the Gulf Oil Spill to Prepare for a Brighter Future: A New Game Engaging Stake Holders in Triple Bottom Line Accounting & Strategic Planning Video Killed the Biblio Star: The Impact of Digital Media on Student Learning Outcomes Exploring Motivation: Using Emoticons to Map Student Motivation in a Business Game Exercise An Alternative to PC and Internet Based Simulations: The Internet Integrated Mode MiddleState University -- A Crisis in Education Complexity Avoidance, Narcissism and Experiential Learning Examining the Cognitive, Affective, and Psychomotor Dimensions in Management Skill Development Through Experiential Learning: Developing a Framework A Situational Leadership Exercise Based on the Biology of a Starfish JOGAI CEFET -- The Industrial Administration Undergraduate Game Would You Take a Marketing Man to a Quick Service Restaurant? Modeling Corporate Social Responsibility In A Food Service Menu-Management Simulation Use of a Simulation in a Large Class Environment for a Marketing Principles Class: A Qualitative Analysis of Whether Learning Objectives were Met A Team Based Information Literacy Exercise ABSEL Marketing Communications Plan An Interdisciplinary Study of the Impact of Playing a Marketing Simulation Game on Student Knowledge of Management Accounting/Finance Principles Analyzing Construction Planning of Interiro Finish Work of Apartment Building by Simulation Doing Murder One Again The Simple Business Game and Simulation Transfering the Knowledge of Middle Management to Novices Infectious Disease Simulation Model for Estimation of Spreading Understanding the Relative Influence of Several Factors in ERP Simulation Performance: An Exploration of Ecological Validity Tragedy of the Commons: An Exercise Using Clickers to Illustrate and Teach a Key Concept in Negotiations The Meaning of Firm Demand in Business Simulations If the Games Work, Why Aren't More Faculty Willing to Play? Those Who Do and Those That Don't: A Study of Engaged and Disengaged Business Game Players