Economic Theories and how they fare in real life...

That fine morning around 4 years back, I found a new face adjacent to my place at office. He was a new joinee who would be looking after a different business unlike mine. We exchanged greeting, introduced ourselves and went for lunch with few of my office friends together. This guy whom I would name Mr “Y” eventually became one of my best friends in office. We partied together, introduced each other to each others circle of friends, and we both were happy to have found a good friend in each other. This all lasted for 4 years when in a sudden turn of events , he left the job and joined a different company. His new profile was to handle the same business that I was involved in. A few months hence and as luck would have it, we both started engaging a Strategic Client for a high value deal without the knowledge that the other was involved too. To be Continued…

Intermission

• The famous economist Adam Smith says  "In competition, individual ambition serves the common good."
• John Nash however counters him by saying – “The best result will come where everyone in the group does what is best for himself ... and the group”
• My Take – In a competitive event , at the slightest hint of non-cooperation, play an individual game and be ruthless.

Lets see what happens next and what could we infer from it –

Intermission Ends

Continued… I was busy trying to close the case when I got a call from the client informing me that the other company has given him a better deal and someone called “Y” was already in the verge of signing agreements the next day. This business was important for me knowing equally that “Y” would be needing it as desperately. The very next moment I called Mr “Y” and told him to divide the deal amongst ourselves wherein we both pass a loan of half of his requirement (John Nash Idea). Mr Y Agreed to my proposal but sadly that’s what I had thought. Next day Mr Y had gone ahead sanctioning the full amount. His explanation was that he thought the requirement was of 10 and he cleared only 5 leaving the rest 5 to me. I bought his explanation until when I asked him if he had met the client personaly to which he denied not knowing the client had already confirmed his meeting with Y. The client had made his requirement of 5 very clear leaving no room for any ambiguity as such. That day I had not only lost a client but also a friend but nonetheless I would thank him for making me a wee bit more wiser and a lot more ruthless. Bidding Adieu our friendship, I wished him luck if ever we meet for a showdown again...

Inference – Unless there is a conflict of interests, every person around you would act as a very loving and a harmless human being. It’s the Conflict of interests that will differentiate between the real and the fake and provide you with an opportunity to see the hidden fangs.