The Two Dollar Game (Essay Sample)

The Two Dollar Game
Student’s Name
University Affiliation
The Two Dollar Game
Statement of the conflict in the game
This game is played in a class where the participants are divided into pairs. Each of the pairs is given a general instruction to share $ 2 between the members of a pair. They are told that the game is a pure win-lose situation and that there are no under deals or subterfuges tolerated in the game (Rowe, 2001). At the beginning, the players are not told that they would play the game three times. The first round and the second round they shift partners. However, the third round they are abruptly told they are paired with the first partner they played with.
Naturally, the players take the game as an easy one since they would share the two dollars equally. Nevertheless, each player is given a Secret Instruction. The secret instructions ensure that each player strives to compete, accommodate or compromise. The aim of the secret instructions is to deal with intangibles (a player’s reputation) and tangibles (amount of money each player wins). Other sets of instructions cover style and demeanour. Further, some students will break the rules by using collaborative deals (Rowe, 2001).
Arguments supporting each side’s position
The game introduces important elements of negotiation theory. The participant is given instruction to be aware of what they can learn about themselves and about others. The concept of bargaining range which may be negative in case there is no room for settlement, and positive where there is opportunity for settlement. Bargaining range will influence the position that each of the participants will take. The idea of a reservation point will influence whether a player stops bargaining or come up with a settlement (Satell, 2009).
The idea of BANTA (the Best Alternative To a Negotiated Agreement) defines where the reservation point will be at, which comes up with the concept of a target (the amount of money that each participant will receive from the amount being shared).
The Two Dollar Game's Benefits and Limitations as Game Theory
The game introduces the concept of win-lose bargaining where if one participant gains, the other lose. It also introduces the concept of win-win bargaining whereby both participants win. Further, it introduces the concept of mixed motive bargaining which sometimes takes place in real life situations (Satell, 2009). Therefore, because the game has all the three strategies is negotiation, it is beneficial to the game theory concept. The limitation, however, lies in there being no pure win-lose bargaining situation in real life. The concept hence has no real life application even though it has been covered in the two dollar game.
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