I have started playing, recently, the online game “Clash of Clans”. Clash of Clans has the option of “donating” troops to other clan members. Troops donated stay in a separate area (so they do not take up area for one’s own troops), and also participate in base defense (as opposed to one’s own troops, which are offensive only). In short, being donated-to makes both one’s offense and one’s defense stronger. However, donating troops means paying the cost of training them and reaping no benefit from it.
Does we have the pay-off matrix: assume paying the cost of troops is -1, and the benefit is +2 (it has to be bigger than the cost, since players do build troops for themselves with even less benefits):
Don’t donate/Don’t donate: 0/0
Donate/Don’t donate: -1/2
Don’t donate/Donate: 2/-1
What I love about this is this is a massive experiment with prisoners’ dilemma on more-or-less average people. As expected, one sees both equilibrium: clans where hardly anyone donates, and clans where everyone donates. In the clans where hardly anyone donates, there is still some reciprocity: (some) people will try to donate “back” to people who donated to them. Since in practice the cost-benefit analysis turns that way, it is sometimes worthwhile to donate even for a .2 chance of a reciprocation, which allows the loop to be fed.
There are reputation effects (the number of troops one donated and one had donated to appears where everyone can see it), which would be assumed to improve the donation rate. However, from my anecdotal experience, being in two clans, the most distinguishing feature is “do you know these people in real life?” Clans made up of people whose reputation effects extend beyond the game are in the good equilibrium. Since I’ve joined the Facebook-employee-only clan, my life has been much better.
I started thinking that Facebook is like that too. In situations where you can help a colleague, where the benefit to the colleague would be disproportional to one’s self, we encourage that kind of thinking. Facebook is in the good equilibrium of the dilemma!
[Plug: We’re hiring engineers and eng. managers. Please contact me on FB with further questions or resumes.]