Diner's Dilemma - Explained
What is the Diner's Dilemma?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
Table of ContentsWhat is the Diner's Dilemma?When Does Diner's Dilemma Occur?Example of Diners dilemmaAcademic Research on Diner's Dilemma
What is the Diner's Dilemma?
Diner's dilemma refers to a situation where several participants in a game strive to get the highest reward but end up destroying themselves. In a bid to come out with the best result, players in a game put one another in an unpalatable situation. Diner's dilemma occurs in other contexts aside from games.
When Does Diner's Dilemma Occur?
Diner's dilemma is otherwise called an unscrupulous diner's dilemma. This dilemma occur when a group of people who go out to dine decide to split the cost equally between them even before ordering their meal. Seeing that the cost will be shared by all the participants, members go ahead to eat expensive meals and not the cheap ones. In the long run, the group pays more for the meal that they thought they would. Ordering expensive meal as against what each participant would have ordered if the bill was not split is influenced by human psychology. This act eventually puts all the participants in an unfavorable position as they end up incurring higher risks and expenses.
Example of Diners dilemma
The most common scenario where the diner's dilemma occur is in a dinner setting where people agree to split costs. Although many people have experienced this dilemma at one time or the other, the term diner's dilemma emerged much later. This is a good example of diner's dilemma in a real-life situation; Anna, Bran, and Bright are friends and decide to go out for dinner on an agreement that the bills will be shared equally amongst the three. At the restaurant, they are presented a menu list and need to decide what meal to eat, the three friends then opt for expensive meals even though they are not likely to eat such meal if the bills were not split. Based on their choice of meals, the friends incur more costs than they naturally would have.
Academic Research on Diner's Dilemma