Prisoner’s Dilemma

1. Considering the Prisoner’s Dilemma in this chapter, provide your own insight on how sites such as eBay “work” for most participants of this popular online auction site. Do they really work? Or is there too much risk?

Shirky outlines the Prisoner’s Dilemma on page 189 of his book. He states that there are different outcomes, which depend upon two parities that lack the ability to communicate or trust each other. Basically these two parties might not cooperate with one another even if it is in their best interests to do so. This relationship is very similar to how sites like eBay operate.

Since there is no way to read other individual’s minds there are four possible outcomes to a Prisoner’s Dilemma. In terms of an eBay transaction the outcomes would be as follows:

The buyer and seller both complete the transaction as expected.

The buyer rips off the seller.

The seller rips off the buyer.

The buyer and seller both rip or take advantage of each other.  

Sites like eBay give users access to a lot of products or services that would other wise not be available to them; however, eBay transaction are hit or miss. eBay allows email communication between buyers and sellers. This lack of direct communication increases the chance of rip offs, and untruthful transactions.  If a user is buying, say a watch for example, on eBay they are running the risk that this watch might not be what they were expecting. The seller is also running the risk of the buyer not providing adequate payment. As an eBay user is it important to always read product descriptions and buy from top rated sellers. By doing so a buyer reduces receiving a defective product and the seller receives payment (and hopefully a higher star rating).

            In my opinion, eBay is a create resource. I believe that most users are looking for the same end result, satisfaction. eBay is a user friendly tool that offers its services with a few clicks of a button. There maybe some users out there that are looking to rip off people but by taking purchased products, and using PayPal or credit cards to place orders most people receive what they are looking for. Overall, I love eBay and do not consider it a risky resource.


"I Pledge" - KES