This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these messages)
|
In operations research, drama theory is one of several problem structuring methods. It is based on game theory and adapts the use of games to complex organisational situations, accounting for emotional responses that can provoke irrational reactions and lead the players to redefine the game. In a drama, emotions trigger rationalizations that create changes in the game, and so change follows change until either all conflicts are resolved or action becomes necessary. The game as redefined is then played.
Drama theory was devised by professor Nigel Howard in the early 1990s and, since then, has been turned to defense, political, health, industrial relations and commercial applications. Drama theory is an extension of Howard's metagame analysis work developed at the University of Pennsylvania in the late 1960s, and presented formally in his book Paradoxes of Rationality, published by MIT Press. Metagame analysis was originally used to advise on the Strategic Arms Limitation Talks (SALT).
A drama unfolds through episodes in which characters interact. The episode is a period of preplay communication between characters who, after communicating, act as players in a game that is constructed through the dialogue between them. The action that follows the episode is the playing out of this game; it sets up the next episode. Most drama-theoretic terminology is derived from a theatrical model applied to real life interactions; thus, an episode goes through phases of scene-setting, build-up, climax and decision. This is followed by denouement, which is the action that sets up the next episode. The term drama theory and the use of theatrical terminology is justified by the fact that the theory applies to stage plays and fictional plots as well as to politics, war, business, personal and community relations, psychology, history and other kinds of human interaction. It was applied to help with the structuring of The Prisoner's Dilemma , a West End play by David Edgar about the problems of peace-keeping.
In the build-up phase of an episode, the characters exchange ideas and opinions in some form or another and try to advocate their preferred position – the game outcome that they are hoping to see realised. The position each character takes may be influenced by others' positions. Each character also presents a fallback or stated intention. This is the action (i.e., individual strategy) a character says it will implement if current positions and stated intentions do not change. Taken together, the stated intentions form what is called a threatened future if they contradict some character's position; if they do not – i.e., if they implement every position – they form what is called an agreement.
When it is common knowledge among the characters that positions and stated intentions are seen by their presenters as 'final', the build-up ends and the parties reach a moment of truth. Here they usually face dilemmas arising from the fact that their threats or promises are incredible or inadequate. Different dilemmas are possible depending on whether or not there is an agreement. If there is an agreement (i.e., stated intentions implement every position), the possible dilemmas resemble those found in the prisoner's dilemma game; they arise from characters distrusting each other's declared intention to implement the agreement. If there is no agreement, more dilemmas are possible, resembling those in the game of chicken; they arise from the fact that a character's threat or its determination to stick to its position and reject other positions may be incredible to another character.
Drama theory asserts that a character faced with a dilemma feels specific positive or negative emotions that it tries to rationalize by persuading itself and others that the game should be redefined in a way that eliminates the dilemma; for example, a character with an incredible threat makes it credible by becoming angry and finding reasons why it should prefer to carry out the threat; likewise, a character with an incredible promise feels positive emotion toward the other as it looks for reasons why it should prefer to carry its promise. Emotional tension leads to the climax, where characters re-define the moment of truth by finding rationalizations for changing positions, stated intentions, preferences, options or the set of characters. There is some experimental evidence to confirm this assertion of drama theory. [1]
Six dilemmas (formerly called paradoxes) are defined, and it is proved that if none of them exist then the characters have an agreement that they fully trust each other to carry out. This is the fundamental theorem of drama theory. Until a resolution meeting these conditions is arrived at, the characters are under emotional pressure to rationalize re-definitions of the game that they will play. Re-definitions inspired by new dilemmas then follow each other until eventually, with or without a resolution, characters become players in the game they have defined for themselves. In game-theoretic terms, this is a game with a focal point – i.e., it is a game in which each player has stated its intention to implement a certain strategy. This strategy is its threat (part of the threatened future) if an agreement has not been reached, and its promise (part of the agreement), if an agreement has been reached. At this point, players (since they are playing a game) decide whether to believe each other, and so to predict what others will do in order to decide what to do themselves.
The dilemmas that character A may face with respect to another character B at a moment of truth are as follows.
Drama-theorists build and analyze models (called card tables or options boards) that are isomorphic to game models, but unlike game theorists and most other model-builders, do not do so with the aim of finding a 'solution'. Instead, the aim is to find the dilemmas facing characters and so help to predict how they will re-define the model itself – i.e., the game that will be played. Such prediction requires not only analysis of the model and its dilemmas, but also exploration of the reality outside the model; without this it is impossible to decide which ways of changing the model in order to eliminate dilemmas might be rationalized by the characters.
The relation between drama theory and game theory is complementary in nature. Game theory does not explain how the game that is played is arrived at – i.e., how players select a small number of players and strategies from the virtually infinite set they could select, and how they arrive at common knowledge about each other's selections and preferences for the resulting combinations of strategies. Drama theory tries to explain this, and also to explain how the focal point is arrived at for the game with a focal point that is finally played. However, drama theory does not explain how players will act when they finally have to play a particular game with a focal point, even though it has to make assumptions about this. This is what game theory tries to explain and predict.
Game theory is the study of mathematical models of strategic interactions. It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science. Initially, game theory addressed two-person zero-sum games, in which a participant's gains or losses are exactly balanced by the losses and gains of the other participant. In the 1950s, it was extended to the study of non zero-sum games, and was eventually applied to a wide range of behavioral relations. It is now an umbrella term for the science of rational decision making in humans, animals, and computers.
The prisoner's dilemma is a game theory thought experiment involving two rational agents, each of whom can either cooperate for mutual benefit or betray their partner ("defect") for individual gain. The dilemma arises from the fact that while defecting is rational for each agent, cooperation yields a higher payoff for each. The puzzle was designed by Merrill Flood and Melvin Dresher in 1950 during their work at the RAND Corporation. They invited economist Armen Alchian and mathematician John Williams to play a hundred rounds of the game, observing that Alchian and Williams often chose to cooperate. When asked about the results, John Nash remarked that rational behavior in the iterated version of the game can differ from that in a single-round version. This insight anticipated a key result in game theory: cooperation can emerge in repeated interactions, even in situations where it is not rational in a one-off interaction.
In game theory, the Nash equilibrium is the most commonly-used solution concept for non-cooperative games. A Nash equilibrium is a situation where no player could gain by changing their own strategy. The idea of Nash equilibrium dates back to the time of Cournot, who in 1838 applied it to his model of competition in an oligopoly.
GNS theory is an informal field of study developed by Ron Edwards which attempts to create a unified theory of how role-playing games work. Focused on player behavior, in GNS theory participants in role-playing games organize their interactions around three categories of engagement: Gamism, Narrativism and Simulation.
The game of chicken, also known as the hawk-dove game or snowdrift game, is a model of conflict for two players in game theory. The principle of the game is that while the ideal outcome is for one player to yield, individuals try to avoid it out of pride, not wanting to look like "chickens." Each player taunts the other to increase the risk of shame in yielding. However, when one player yields, the conflict is avoided, and the game essentially ends.
In international relations, the security dilemma is when the increase in one state's security leads other states to fear for their own security. Consequently, security-increasing measures can lead to tensions, escalation or conflict with one or more other parties, producing an outcome which no party truly desires; a political instance of the prisoner's dilemma.
The foundations of negotiation theory are decision analysis, behavioral decision-making, game theory, and negotiation analysis. Another classification of theories distinguishes between Structural Analysis, Strategic Analysis, Process Analysis, Integrative Analysis and behavioral analysis of negotiations.
In game theory, a non-cooperative game is a game in which there are no external rules or binding agreements that enforce the cooperation of the players. A non-cooperative game is typically used to model a competitive environment. This is stated in various accounts most prominent being John Nash's 1951 paper in the journal Annals of Mathematics.
In game theory, the stag hunt, sometimes referred to as the assurance game, trust dilemma or common interest game, describes a conflict between safety and social cooperation. The stag hunt problem originated with philosopher Jean-Jacques Rousseau in his Discourse on Inequality. In the most common account of this dilemma, which is quite different from Rousseau's, two hunters must decide separately, and without the other knowing, whether to hunt a stag or a hare. However, both hunters know the only way to successfully hunt a stag is with the other's help. One hunter can catch a hare alone with less effort and less time, but it is worth far less than a stag and has much less meat. But both hunters would be better off if both choose the more ambitious and more rewarding goal of getting the stag, giving up some autonomy in exchange for the other hunter's cooperation and added might. This situation is often seen as a useful analogy for many kinds of social cooperation, such as international agreements on climate change.
In game theory, a solution concept is a formal rule for predicting how a game will be played. These predictions are called "solutions", and describe which strategies will be adopted by players and, therefore, the result of the game. The most commonly used solution concepts are equilibrium concepts, most famously Nash equilibrium.
A metagame, broadly defined as "a game beyond the game", typically refers to either of two concepts: a game which revolves around a core game; or the strategies and approaches to playing a game. A metagame can serve a broad range of purposes, and may be tied to the way a game relates to various aspects of life.
In game theory, a focal point is a solution that people tend to choose by default in the absence of communication in order to avoid coordination failure. The concept was introduced by the American economist Thomas Schelling in his book The Strategy of Conflict (1960). Schelling states that "[p]eople can often concert their intentions or expectations with others if each knows that the other is trying to do the same" in a cooperative situation, so their action would converge on a focal point which has some kind of prominence compared with the environment. However, the conspicuousness of the focal point depends on time, place and people themselves. It may not be a definite solution.
A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. The collective action problem has been addressed in political philosophy for centuries, but was more famously interpreted in 1965 in Mancur Olson's The Logic of Collective Action.
Risk dominance and payoff dominance are two related refinements of the Nash equilibrium (NE) solution concept in game theory, defined by John Harsanyi and Reinhard Selten. A Nash equilibrium is considered payoff dominant if it is Pareto superior to all other Nash equilibria in the game.1 When faced with a choice among equilibria, all players would agree on the payoff dominant equilibrium since it offers to each player at least as much payoff as the other Nash equilibria. Conversely, a Nash equilibrium is considered risk dominant if it has the largest basin of attraction. This implies that the more uncertainty players have about the actions of the other player(s), the more likely they will choose the strategy corresponding to it.
In game theory, the traveler's dilemma is a non-zero-sum game in which each player proposes a payoff. The lower of the two proposals wins; the lowball player receives the lowball payoff plus a small bonus, and the highball player receives the same lowball payoff, minus a small penalty. Surprisingly, the Nash equilibrium is for both players to aggressively lowball. The traveler's dilemma is notable in that naive play appears to outperform the Nash equilibrium; this apparent paradox also appears in the centipede game and the finitely-iterated prisoner's dilemma.
Metagame analysis involves framing a problem situation as a strategic game in which participants try to realise their objectives by means of the options available to them. The subsequent meta-analysis of this game gives insight in possible strategies and their outcome.
Cooperative bargaining is a process in which two people decide how to share a surplus that they can jointly generate. In many cases, the surplus created by the two players can be shared in many ways, forcing the players to negotiate which division of payoffs to choose. Such surplus-sharing problems are faced by management and labor in the division of a firm's profit, by trade partners in the specification of the terms of trade, and more.
Promise theory is a method of analysis suitable for studying any system of interacting components. In the context of information science, promise theory offers a methodology for organising and understanding systems by modelling voluntary cooperation between individual actors or agents, which make public their intentions to one another in the form of promises. Promise theory is grounded in graph theory and set theory.
Confrontation analysis is an operational analysis technique used to structure, understand and think through multi-party interactions such as negotiations. It is the underpinning mathematical basis of drama theory.
Sequential bargaining is a structured form of bargaining between two participants, in which the participants take turns in making offers. Initially, person #1 has the right to make an offer to person #2. If person #2 accepts the offer, then an agreement is reached and the process ends. If person #2 rejects the offer, then the participants switch turns, and now it is the turn of person #2 to make an offer. The people keep switching turns until either an agreement is reached, or the process ends with a disagreement due to a certain end condition. Several end conditions are common, for example: