The Tragedy of the Profit Commons.

You’ve heard of the tragedy of the commons, right? It’s that fun little game theory concept where individuals act in their own self-interest and deplete a shared resource, even when it’s not in the group’s long-term interest. Classic examples include overfishing the oceans or polluting the air with greenhouse gas emissions. Well, my friends, I have a new tragedy to share with you: the tragedy of the profit commons.

See, companies today are all about sustainability and the triple bottom line – people, planet, and profits. They talk a big game about being eco-friendly, ethical, and socially responsible. But when it comes down to it, most of them are really just interested in that last P: profits.

It’s like we’re all playing a massive game of Game Theory: The Sustainability Edition. Each company is trying to maximize its own profits by cutting costs, even if that means depleting our shared resources (i.e., the environment and society). They figure, “Hey, if we don’t do it, our competitors will, so we might as well get in on the action!”

The problem is, when everyone thinks that way, we all lose in the end. It’s a classic prisoner’s dilemma – we’d all be better off cooperating for the greater good, but greed and mistrust lead us down a path of mutual destruction (or at least, a really unpleasant future on a scorched planet).

Of course, there are a few companies out there trying to be the good players, investing in renewable energy and fair labor practices. But they’re fighting an uphill battle against the profit-maximizing masses. It’s like they’re the nice kids on the playground, and the other companies are the bullies taking their lunch money (and their future).

So what’s the solution? Well, if this were a game theory textbook, the answer would be for some higher authority (i.e., the government) to step in and change the rules of the game, incentivizing sustainable behavior. But we all know how well that tends to go in the real world. Maybe we need a new game master to lay down some fresh rules?

Or maybe we just need more companies to realize that the tragedy of the profit commons is, well, tragic – and that long-term thinking and cooperation is the only way to win. Otherwise, we’re all just cannon fodder in the great game of Extincto-nomics.