Using the Prisoner’s Dilemma to Teach Business Ethics When Personal and Group Interests Conflict
Author(s)
James, Harvey S. Jr.
Abstract
This paper shows how the Prisoner’s Dilemma can help students recognize and understand the ethical ramifications of decisions they make. The advantage of studying the Prisoner’s Dilemma is that it models situations in which there is a conflict between the interests of individuals and the well-being of the group. Accordingly, it provides an effective framework for illustrating the importance of ethical decision-making by managers in a business and social environment. The paper describes two classroom activities that characterize the Prisoner’s Dilemma and draws two important principles for the teaching of business ethics. The two principles are the implication effect and the self-defeating behavior effect. The paper also suggests several discussion points based on the two classroom activities and the two principles.
