Normative Games

Normative games are based on the assumption that players not only pursue personal interests but are also guided by values, social norms, and collective cultures. This theory examines interactions between individuals or groups that follow different value systems.

Key Elements of Normative Games:

🧑‍🤝‍🧑 Players:

  • Individuals, groups, or communities with their own set of cultural values and beliefs.
  • Players may act based on moral, social, or religious norms.
  • Decisions are influenced by social pressures, shame, or honor.

📜 Norms:

  • Unwritten rules that define acceptable behaviors within each culture or group.
  • These norms may conflict with optimal strategies.
  • Violating norms can lead to social penalties (e.g., exclusion).

💎 Values:

  • Goals or ideals that players aim to uphold or promote.
  • Example: fairness, honesty, or collective harmony.

🔄 Normative Interactions:

  • Player choices are based on their culture and norms, which can lead to convergence or conflict.
  • Example: One group may value individualism, while another emphasizes cooperation.

🏆 Rewards and Sanctions:

  • The outcomes of player actions, which can be financial, emotional, or social.
  • Rewards include increased credibility, trust, or social acceptance.
  • Sanctions include loss of credibility, blame, or social exclusion.

🔑 Key Concepts:

⚖️ Normative Equilibrium:

  • A state where players achieve the best possible result by following their norms and values.
  • This may conflict with Nash equilibrium, as players might forgo optimal economic strategies to preserve cultural values.

💥 Norm Conflict Game:

  • A game where differing norms between players lead to conflict.
  • Example: Interaction between an individualistic culture and a collectivist culture in group decision-making.

🌍 Cross-Cultural Games:

  • Modeling interactions between communities or groups with different cultural backgrounds.
  • These games focus on how cultures adapt or clash in shared contexts.

🧮 Proposed Mathematical Framework:

🔢 Normative Utility Function:

  • For each player, utility includes not just financial or material gain but also normative values:
    • Financial and material benefits.
    • The value of adhering to cultural norms.
    • Social rewards such as trust or reputation.

🔄 Normative Interaction:

  • A player’s decision depends not only on the strategies of others but also on their acceptance or rejection of each other’s norms:
    • The degree of compatibility between players’ norms.

📈 Real-World Examples:

🌐 International Trade:

  • Companies operating in different societies must respect each market’s cultural norms.
  • Example: Differences in negotiation styles in Asian cultures (emphasis on harmony and respect) versus Western cultures (directness and competition).

🕊️ Political Negotiations:

  • Diplomacy between countries with conflicting values (e.g., human rights vs. national sovereignty).
  • Example: The Iran nuclear deal negotiations.

💪 Social Issues:

  • Interaction between different groups in societies with high cultural diversity.
  • Example: Acceptance or resistance to normative changes in ethical issues (e.g., women’s rights or minority rights).

🎯 Theory Goal:

  • To help better understand intercultural conflicts and cooperation.
  • Designing strategies that take into account both material interests and cultural norms.
  • Finding sustainable solutions to social and international problems.

📊 Expanded Dimensions:

⚔️ Normative Conflict:

  • In some games, players experience conflict due to differing norms.

⚖️ Weighting Norms in Strategy:

  • Norms can have different weights in players’ decision-making.
  • Example: In Culture A, “group loyalty” holds 70% weight, while in Culture B, “personal advancement” holds 60% weight. Players decide based on these priorities.

🔄 Multi-Stage Strategies:

  • In normative games, interactions can repeat, and players can adjust their strategies based on previous interactions.
    • Learning Strategies:
      • “Gradual adaptation” where players adjust their behavior over time to reduce conflict.
      • “Value change” where players with weaker norms adopt stronger ones.

🌍 Real-World Cases and Analysis:

🌐 International Trade: Samsung in Iran:

Scenario:

  • Samsung, a Korean company, enters the Iranian market. Two distinct cultures exist:
    • Korean Culture: Focuses on group coordination and teamwork without direct competition.
    • Iranian Culture: Emphasizes personal relationships and informal trust-building.

Challenge:

  • Koreans initially emphasize formal structures and protocols, while Iranians prioritize informal, personal connections.

Solution based on Normative Game Theory:

  • Samsung can adopt a gradual adaptation strategy:
    • Initially focus on formal protocols for staff training.
    • Later create opportunities for informal communications (e.g., cultural exchange meetings).
    • Normative Equilibrium: By blending Korean and Iranian norms, Samsung can achieve a sustainable result.

🕊️ Political Negotiations: Iran Nuclear Deal (JCPOA):

Scenario:

  • Negotiations between Iran and Western countries over the nuclear program.

Western Values: Transparency and non-proliferation of nuclear weapons. Iranian Values: National sovereignty and scientific advancement.

Challenge:

  • The West seeks strict monitoring mechanisms, while Iran views these as a threat to its independence.

Analysis using Normative Games:

  • Normative Conflict: A mismatch between “transparency” and “national sovereignty.”
  • Conflict Index (DDD): High, as both parties see their values as non-negotiable.

Solution:

  • Conflict Reduction Strategy:
    • Iran may offer more transparency but within a framework that acknowledges its sovereignty.
    • The West could apply indirect monitoring with gradual trust-building measures.

💪 Social Issues: Women’s Rights in Traditional Societies:

Scenario:

  • Women’s rights activists in a traditional society work to change laws regarding women’s rights.

Traditional Norm: Male superiority and women’s roles within the family. Modern Norm: Gender equality and equal rights.

Challenge:

  • Conflict between generations and groups with opposing norms.

Analysis using Normative Games:

  • Normative Conflict (DDD): Very high, as the normative values are vastly different.
  • Traditional Group Behavior: Resistance to changing norms.
  • Modern Group Behavior: Push for legal reforms.

Solution:

  • Gradual Adaptation Strategy:
    • Introduce small, incremental changes that don’t completely contradict traditional norms.
    • Example: Begin with teaching gender equality in schools and media.
    • Normative Reward: Increased social respect and acceptance for those who support these changes.