Tuesday, October 09, 2007

Nash Equilibrium in Employee/Employee Relations

Did you see the movie A Beautiful Mind? I think the Nash equilibrium (governing dynamics) shown in the bar scene, with the guys trying to get girls, applies in the relationship between employers and employees--i.e., if employers make decisions that balance what is best for the company and what is best for the employees, the result is optimal for both. Same thing goes for employees; however, I think the employer must initiate the process to develop the trust needed for employees to do the same. Why the employer? Because the power balance favors the employer; thus the employer is the only one who can eliminate fear by being just.

Of course, all this is a way to restate the Golden Rule and "Love thy neighbor as thyself" in a mathematical way.

David Orr

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