09 1 / 2010
Cooperative vs Competitive, in Equilibrium or in need to keeping it Gangsta
I’m constantly having to run geek formulas to ensure that I don’t get fucked over and to make sure everybody is always cool with each other. Cool with each other means being in equilibrium.
The problem with doing business in Vietnam is not whether if somebody is going to try to fuck you over… it’s just a matter when and how bad. Add in the fact that legal framework and credit systems is still very weak out here. In the States, if a somebody doesn’t pay you, you can hurt their credit score or take them to small claims. So breaking contracts in Nam have little to no consequences. This is when Might Makes Right can come into play. This is the reason why Tony Soprano lives in a nice house, because there’s a demand for a law substitute and to enforce contracts both legal and illegal.
So here’s the math formula that tells whether things are cool (in equilibrium) or if you’re about to get fucked over.
the value of cheating/not cooperating with you today has to be equal or less than the value of working with you in the future minus the value of the penalty/consequence of cheating/not cooperating you today.
So in normal people speak, the people who you deal with should always feel that they will always be doing future business with you, and that these future deals will make them more money in the lifetime of dealings than fucking you over for whatever amount today. In addition, if they can no longer see making a lot of money in the future with you, then they better see the cost of fucking you over today is going to cost them more than a pretty-effin-penny (i.e. you might go Tony Soprano on their asses).
Hopefully, you’re in a business relationship that’s more cooperative in nature. In order to have cooperation, there must be good communication between the parties. Without good communication, then when it’s very easy for competitive natures to arise. And the only way to counter the behavior is with Tit-for-Tat or equivalent retaliation. Treat me good, I’ll treat you good. If it’s fuck me? Then it’s Fuck You (or what I like to say, keeping it gangsta)!
So using the math formula to check if things are in equilibrium becomes a great future prediction model. I use it to gauge the temperature feel of investor/entrepreneur relationship. Whether or not I believe clients will actually pay. And even sorting out taxi drivers…
Taxi drivers everywhere are notorious for screwing over passengers. Why? Because, it’s not likely you’ll run into them again. That’s why… if they pick me up at my home or office, I’ll sometimes ask if they’re regular to the area and if I can get their mobile number so maybe they can be my regular driver (increase in future dealings value with guaranteed work), or I just sound really stern and nasty and imply that if they drive around in circles to waste my time and money… they’ll get choked out with their own seat belt. So either way they better cooperate.
