Victus Spiritus


The Greedy Node Erodes Trust in the Network Economy

12 Mar 2010

An abstraction of all markets is one great information and industrial network. Businesses and individual decision makers are responsible for moving and transforming resources as efficiently as possible. The rules of game theory are readily applicable for link creation (partnerships) within this global network. Tit for Tat is a favored strategy for identifying beneficial and harmful member nodes.

Deception once discovered, is punished through alienation. Any business representatives who act one way, but make their decisions another are quickly identified as agents of distrust. The network is relentless in identifying facades and ulterior motives, evidenced by the flow of resources. Business leaders that can be relied upon gain strength by the ultimate act of trust, channelling resources through a connected network node.

Strategies of Generosity and Self Interest Overlap

It's selfish to be generous to the right partners. Each new business is first identified by it's more well known associations, so early partnerships are signals to the rest of the network. Businesses blend at the edges with complimentary strategic partners, and likely trusted friends (accounting records are always separate!). The entire market area grows as it earns value from the global network, benefitting all members who share in the network of trust.

Sometimes, the best action to take is to be generous to a person or group that appears to have to no relation at all to your business. The power of investing in communities in need creates a powerful bond of trust that may payoff in ways that are not fiscally measurable.