PRISONERS DILEMMA MODEL ON STREET VENDORS IN BENGKULU CITY

Abstract

The existence of Street Vendors (PKL) in Bengkulu City also contributes to the community's economy. The large number of street vendors illustrates a conflict of interest where the actions of one trader have an impact on the income of other traders. In game theory, this condition is in line with the prisoner dilemma theory which explains the occurrence of a conflict between two prisoners who want to get a lighter sentence but the duration of the sentence is determined by the confession given by the two prisoners in separate places. When the two players interact, then actions that benefit one player are not advantageous to the other. If all players do the best strategy for them, then the result will end up in a worse situation for both of them.

This study tests the prisoner's dilemma theory to prove whether with the best strategy the reward will be better or worse for both parties? The data used is primary data from 90 respondents who sell food and beverages in Bengkulu City. The data collected includes information on demographic variables, business characteristics, and sales characteristics. The results of the study prove that the prisoner's dilemma theorem applies to street vendors in Bengkulu City. Cooperative strategies are not able to provide maximum rewards for street vendors. However, non-cooperative strategies further worsen the results received. Therefore, the strategy to obtain maximum rewards is not only determined by internal conditions, but also external conditions. Internal conditions are factors controlled by street vendors such as food taste, packaging, price, and selection of selling locations. Meanwhile, external factors are conditions of uncertainty that cannot be controlled by street vendors, such as taste, weather, and the number of consumers.