Step-level dilemma and volunteer's dilemma
Step-level dilemma refers to a situation where individuals are faced with a dilemma of whether to make a small personal sacrifice for the collective good. In this dilemma, the optimal outcome is achieved when everyone cooperates and makes the sacrifice, but if individuals act selfishly and do not contribute, the overall outcome may suffer.
For example, in a company where employees are given the option to reduce their working hours slightly to avoid layoffs, each individual is faced with the decision of whether to make the sacrifice for the greater good of saving jobs. If everyone agrees and reduces their working hours, the company can avoid layoffs and maintain stability. However, if some employees choose not to participate and continue working full hours, the company may face financial difficulties and resulting layoffs.
The volunteer's dilemma is a specific type of step-level dilemma that occurs in situations where individuals are faced with the decision of whether to volunteer their time or resources for a common cause. The optimal outcome happens when everyone volunteers, contributing to the cause and achieving a collective benefit. However, if individuals choose not to volunteer but still benefit from the efforts of others, it can create a free-rider problem where others may bear the burden while enjoying the benefits.
For example, in a community where volunteers are needed to clean up a park, each individual has the choice of whether to volunteer their time. If everyone volunteers, the park will be clean and enjoyable for all community members. However, if some individuals decide not to volunteer but still benefit from the clean park, it can create a situation where others are burdened with the task while benefiting equally.
Both step-level dilemma and volunteer's dilemma focus on the tension between individual self-interest and collective well-being. They highlight the importance of cooperation and collective action in achieving optimal outcomes for larger groups or communities.