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Cooperation and Defection in Business Relations.
By: ANDREW SCHWARTZ

In modern life there are many spheres, which may be described as the prisoner’s dilemma: for example, the relationships between the employer and employee or shop assistant and buyer. The relationships of employer and the employee may be called as cooperation: the employer gives a job, helps to earn money, trust with the confidential information. The employee at the same time shows all his abilities and skills as the valuable worker. Generally speaking they help each other to reach their common goal. If the employee leaves the job after the training time and uses the abilities, that he acquired, to work in some other place, it means defecting. Now some information about vendor - buyer relations. For example, the company deals with the sailing of the calculators, and they want to expand into personal digital assistants and make a division to produce and sell these. The existence of the new division widens their range. Instead of being fired, they have something additional to propose. In this case they are cooperating and refer business to the PDA division, considering that it is not going to supplant them in their accounts. The head of the company does not realize that there is a new web of cooperation. Their job consists in persuading buyers to purchase not a simple calculator, but the PDA. Moreover, after the claims of some clients, the employees are demanding from their boss to produce their own row of calculators. Besides, the PDA’s are very difficult to produce and to sell. This very case shows the bright example of the defection. All forces have been lost, in spite of the fact that so much could be made in cooperation. The situation is complicated with the fact that in conditions of the modern market, the initial calculator business has the great competition.

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