Business Ethics and Game Theory
Business Ethics and Game Theory

Summary/Abstract: At first glance, game theory could support with rational, ideologically neutral arguments, the logic necessity of acting ethically in business. Apparently, this is what we learn from the Prisoner’s Dilemma, the Peasant’s Dilemma, or Tit for Tat. All of these strategic games suggest that the winning business strategies combine the competitive aggressiveness and the openness for cooperation with the other players of the economic game. Consequently, it is only rational to adopt an ethical behaviour in business activities, respecting the legitimate rights and interests of different categories of stakeholders. Nevertheless, this view is arguable, since game theory ultimately suggests that the best strategy in business is the cooperation of the competitors. Such unfortunate kind of cooperation is detrimental to the legitimate interests of employees, customers, suppliers, etc. On the other hand, except utilitarianism, the rest of the major ethical theories deny the moral character of those actions that are motivated by self-interest. This study concludes that game theory cannot offer a solid ground for business ethics.

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