In my example, my two friends were caught coping from each other in an exam. The instructor who caught them had no hard evidence to report them so he solely depended on their confession.  They were not allowed to talk to each other. If both confessed, they were to do a new exam. If none of them confessed, they were to go free but if only one of them confessed, the other one would be expelled from school.

In this example, the best outcome is for none of them to confess. The chances of the best outcome happening is determined by how the two socialize. Socialization plays a major role in this kind of a situation. If my two friends have ever been in another situation, what each did in that other situation may influence what their counterpart will do this time. This is the tit-for -tat phenomena. Naturally, in our social networks, the tit-for -tat phenomena plays almost everywhere.  How people interact in the society. If any of my two friends have ever rated out on the other friend, the reciprocation phenomena will play out.

The norm of reciprocity can also influence the above example. In our social circles, it is common to for someone to give out to a friend simply because the friend had also given him/her something in the past. The kind of socialization my two friends have will be the determinant of the outcome. If their socialization is that of mistrust, they will both rat out. If they consider self-interest, they both lose.  8if their socialization has enabled them to trust each other fully, they will confess simply because they trust each other not to confess.

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