A conflict occurs when the interests of independent parties are perceived as irreconcilable. Social exchange theory concerns the perceived relative value of rewards and costs in a relationship, evaluated in terms of the comparison level (CL) of others in that situation and the comparison level for alternatives to that relationship (CLalt). A ‘game’ is a situation in which two or more interdependent parties make decisions that affect each other according to rules. Games are either zero-sum, in which one party’s gains match the opponent’s losses, or non-zero-sum (mixed motive), in which some outcomes are mutually preferable to others. A game that is non-negotiable (only one winner) in which the goal-directed behaviour is threatening and in which both players can lose disastrously is called a dangerous game. A collective dilemma occurs when rational behaviour by individuals produces an outcome that is collectively undesirable (e.g., the commons problem and the provision of public goods problem). Threat often intensifies conflict through a spiralling series of threats and counter-threats. Communication sometimes reduces conflict by clarifying intentions, but it can also be used to manipulate and deceive. The most effective strategy in bargaining combines firm resistance to exploitation with reciprocation of the other party’s cooperative behaviour. Mediation and arbitration are third-party interventions designed to reduce conflict.

KEYWORDS: arbitration, collective dilemma, conflict, dangerous game, game theory, mediation, non-zero-sum, social exchange, zero-sum

1. When there is conflict, both parties can achieve their goals at the same time.

2. If the CLalt is higher than the level of the outcome offered by an exchange or relationship, a person is likely to terminate the social exchange or relationship.

3. A non-zero-sum or mixed motive game is one in which both sides can cooperate to mutual advantage.

4. Conflict in which two parties are not yet aware their goals are incompatible is called displaced conflict.

5. In the Deutsch and Krauss ‘trucking game’ study, cooperation was enhanced when both sides had the use of gates to threaten the other.

6. In Western societies, competitiveness, particularly among males, increases with age.

7. A new stereo probably has more utility than a soft drink.

8. Superordinate goals can often lead both sides in a conflict to cooperate.

9. With mixed-motive games, there is a motivation to cooperate and to compete.

10. A mediator is likely to intervene in the process of dispute settlement by trying to reduce misperceptions.

1. F 

2. T 

3. T

4. F

5. F

6. T

7. T

8. T 

9. T

10. T  

MCQ's for Chapter 8

1. Explain the terms CL and CLalt as they relate to social exchange theory.

2. Explain how a zero-sum game works.

3. Use a payoff matrix to explain how a non-zero-sum game works.

4. Explain and give an example of the commons problem.

5. Explain and give an example of the public goods problem.

6. How does group size affect cooperation?

7. What are the characteristics of dangerous games?

8. How do mediation and arbitration differ as ways of resolving conflict?

9. Explain the significance of superordinate goals in conflict resolution. 

1. Why is the issue of communication so important to the Prisoner’s Dilemma Game?

2. What does research tell us about the characteristics that make threats effective?