Introduction

Ladies and gentlemen, today, we delve into the fascinating world of Game Theory.

It's a powerful tool that not only helps us understand human behavior but also guides
strategic decisions in the business world. But here's the twist: we're not stopping there. We're going
to explore how Game Theory intertwines with ethics and sustainability.

In this brief presentation, our goal is to shed light on the ethical and sustainable dimensions
of Game Theory, emphasizing its significance in understanding human behavior, influencing pivotal
business decisions, and contributing to a more sustainable world. As we journey through this
intricate landscape, we'll discover the pivotal role Game Theory plays in shaping ethical choices
and its capacity to promote sustainability within the commercial realm.

So, let's embark on this thought-provoking exploration, where we'll unravel the hidden connections
between ethics, Game Theory, and sustainability in the world of business.

Part I - Understanding Human Behavior (2 min)

In our quest to explore the connections between ethics, sustainability, and game theory, let's start by
understanding what game theory is and how it applies to understanding human behavior.

a) What is Game Theory?

Game Theory is a mathematical discipline that focuses on strategic interactions between

individuals, organizations or nations. It seeks to model the decisions taken by actors based on the
actions of others. This discipline is crucial for understanding how individual choices are influenced
by the choices of others, which is essential for the analysis of conflict and cooperation situations.

Game Theory is of great importance for understanding human behavior, especially in the area of
ethics and sustainability. It allows us to dissect social dynamics, moral dilemmas, and strategies
adopted by individuals and companies. As students of ethics and sustainability, you will understand
that our ethical decisions are often influenced by our perception of the impact of our actions on
others. Game theory gives us tools to explore these complex interactions.

b) The Dilemmas of Game Theory

Game theory dilemmas are situations where individuals are faced with difficult choices. A classic
example is the “prisoner’s dilemma.” Two people arrested for a crime must decide whether to
cooperate with the police or betray each other. If both cooperate, they get a light sentence. If both
betray each other, they receive a heavier sentence. However, if one cooperates and the other betrays,
the one who betrays goes free, while the other receives a severe sentence. This dilemma highlights
the tension between cooperation and betrayal, a key element of game theory.

c) Commercial Applications of Game Theory

Game Theory also has many applications in the business world. It helps us understand how
companies make strategic decisions, negotiate contracts, or manage limited resources. For example,
when a company must decide to reduce production to keep market prices stable, it must anticipate
the responses of its competitors. Game theory allows us to model these interactions and predict
possible outcomes.

In summary, the first part of our presentation laid the foundation for our exploration of game
theory in the context of ethics and sustainability. We have seen how game theory is essential for
understanding human behavior, including moral dilemmas, and how it can be applied to business
decisions. In the next part, we'll go even further by examining a case study involving two
companies and their business decisions.
 Part III - How do ethics intervene in gaming strategies? Sustainability and externalities
(2 min)

In this third part, we will explore in depth how ethics plays a vital role in gaming strategies,
highlighting sustainability and externalities.

a) Ethics and Sustainability in Business

Sustainability is more than just a business trend today; it has become a major ethical imperative.
Businesses increasingly recognize that their actions have an impact on the environment and society,
and they are responsible for how they manage these impacts. This realization is forcing them to
rethink their business approach, moving from a focus on short-term profits to a long-term
responsibility to future generations.

b) Modeling Limited Resource Situations

Game theory is proving to be a powerful tool for modeling situations where scarce resources are at
stake. Consider a concrete example: two competing companies seeking to exploit a valuable natural
resource, such as water in an arid region. Game theory allows us to analyze in detail how these
companies could interact, negotiate and eventually reach a sustainable solution for the exploitation
of this resource.

c) The Role of Ethics in Decision Making

In these contexts of limited resources, ethics becomes a decisive factor. Businesses must consider
the ethical implications of their actions on the environment, local communities and future
generations. Ethics requires that businesses act responsibly and fairly, avoiding the depletion of
natural resources and minimizing negative externalities.

Let's illustrate the importance of ethics with our example of two competing companies. If one
chooses to divert water from the local community to maximize short-term profits, this decision
could have devastating consequences for residents and the environment. On the other hand, if the
two companies decide to cooperate and implement sustainable practices, they can not only preserve
the resource, but also strengthen their ethical reputation.
In conclusion of this part, game theory proves to be a powerful tool for exploring decisions related
to sustainability, while highlighting the essential role of ethics. It allows us to model limited
resource situations and show how ethical decisions can promote sustainability in a business context.

Now, in the next and final part, we will return to the triangular relationship between ethics, game
theory and sustainability, and we will launch a debate to engage our audience in a crucial reflection
 Conclusion (45s / 1 minute)

To summarize, game theory, ethics, and sustainability form an essential trinity in our understanding
of decisions and actions in the business world. Game theory provides us with a powerful tool for
analyzing complex interactions, ethics guides us toward morally responsible choices, and
sustainability has become a cornerstone of business responsibility to the environment and society.

By examining how these three elements interact, we uncover opportunities to promote ethical and
sustainable decisions. Debates and emerging questions are essential to shaping a future where ethics
and sustainability are not just goals, but a reality.

We are therefore going to encourage you to debate on the subject.

How do you think we can encourage greater adoption of these ethical principles in
business decisions? How can game theory be a valuable tool for businesses seeking
sustainability?

Question 1: How can we encourage greater adoption of ethical principles in business

decisions?

Education: Integrate ethics and corporate social responsibility (CSR) into business
education programs.

Clear ethical standards: Develop and promote clear and binding ethical standards to guide
businesses.

Rewards for sustainability: Encourage financial incentives for businesses that adopt
sustainable practices.

Transparency: Promote transparency of business practices to hold businesses accountable.

Stakeholder engagement: Involve stakeholders, including consumers, investors and NGOs,

in promoting ethics.
Question 2: How can game theory be a valuable tool for businesses seeking sustainability?

Interaction modeling: Use game theory to model interactions between companies and
predict possible outcomes.

Sustainable Negotiations: Game theory helps develop sustainable negotiation strategies in

resource-constrained contexts.

Incentives for cooperation: Establish incentive mechanisms to encourage cooperation

between businesses for sustainability.

Managing externalities: Using game theory to manage negative externalities and minimize
environmental impacts.

Shared Responsibility: Game theory can encourage a view of shared responsibility among
business actors for more sustainable decisions.