Development and Finance from issue 2010/1

Éva Fenyvesi

Game Theory and Knowledge Management

- Abstract -

JEL C-70

In no area of life is it inevitable that a prisoner dilemma situation will develop. Often these situations come about because cooperation means giving something up. Knowledge sharing is essentially not a prisoner dilemma situation, it is more the individuals involved who make it into one. Nobody loses knowledge by sharing it; in fact it is much more likely to increase if it is used. At the same time, in certain situations competition is at least as necessary as cooperation if knowledge is to increase. It is not possible to talk in terms of ratios, either is good as long as it helps the organisation achieve its objectives. (1) In knowledge sharing the way in which cooperation is attained is crucial, i.e. whether the solutions adopted are based on compromise or consensus, whilst the outcome of the prisoner dilemma situation is mainly influenced by whether or not we are willing to cooperate. (2) The leadership and the values it represents can rewrite the parameters in such a way that the values employees adhere to mean they should cooperate with one another because they know that in so doing their own interests will also be served.

Éva Fenyvesi, PhD, professor of economics (Budapest College of Management)

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