Diner’s Dilemma
- Inventors of Game: Uri Gneezy, Ernan Haruvy, & Hadas Yafe
Think about this situation for a minute. You and your bros, or maybe your girls (we’re equal opportunity) want to go out to eat. Yet there might be that one person who decides they want to pay for everyone. Maybe they ended up getting a new cushy job or something. However, you and the other friends take exception to this and claim YOU want to pay the bill. Eventually, you all decide to split the bill equally. This is something that would ideally save you money. Keep in mind though, that split bill is on the TOTAL of each meal. A person is not just paying for their own meal here. This is the Diner’s Dilemma game theory.
Most assume that splitting the overall total means they’d actually save money, which is the design of the idea. But what often ends up happening is that the friends sabotage each other by ordering dishes more expensive than they otherwise would have, if they were buying for themselves only. This is the issue when it comes to economics and data only. You can assume a split will be best, but human nature is a factor that is hard to control. Many assume splitting the total bill will save money, so ordering more expensive items seems logical. When in reality, they’ll likely pay more in the end than they would have.