Cooperation and Trust LO5958
Sat, 2 Mar 1996 08:35:07 -0800

Replying to LO5896


You offered two observations out of Axelrod's Evoluion of co-operation.
Let us not forget the other two

1. The shadow of the future must not be too large [basically above a 15%
discount rate the EMV of any future pay-off recedes to insignificance and
most corporations I've seen set much higher hurdle rates on projects]

2. The game must be a positive sum

Those to lead me to the following suggestion which I would welcome
responses to [I make a distinction between wealth and money]:

What is revealed is a Catch 22. Collaboration is fostered by wealth
generation, and collaboration fosters wealth generation. Wealth
destruction might be reversed by collaboration but collaboration is
unlikely to evolve in a climate of wealth destruction. A market can
therefore lock itself into one of two cycles of positive feedback, one a
cycle of success, the other a cycle of failure. The shift from one to
another is unlikely to happen spontaneously. It might be born out of
crisis. Otherwise a shift of thinking; a shift of being is required.
Collaboration and commitment or control and competition You cannot get
there from here!

If Price
The Harrow Partnership
Pewley Fort Guildford UK

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