Final answer:
The game theory model, particularly the dominant strategy concept in the Prisoner's Dilemma, illustrates how individuals might exploit situations for personal gain. This model explains the self-interested nature of decision-making, which can lead to suboptimal outcomes for the group or society as a whole. Rationalization tactics like the denial of the victim are used to justify such behaviors.
Step-by-step explanation:
The game theory model can be used to exploit a situation for personal gain. In game theory, individuals are portrayed as self-interested actors who will make decisions based on maximizing their own benefit, often represented by using the dominant strategy. This concept is applied in the well-known Prisoner's Dilemma, where two individuals must decide whether to cooperate or betray one another without knowing the other's choice. If both prisoners act out of self-interest and confess, they end up serving a total of 10 years in jail, whereas cooperating would lead to a better outcome for both.
This situation reflects broader economic principles where individuals or firms pursue strategies that benefit themselves, even if it might not be the most optimum for the group or society. The denial of the victim is a rationalization tactic some might invoke to justify their self-serving actions, believing that if there is no victim, there is no crime or seeing their actions as entirely justified. This is seen in a scenario where an employee who hasn't received a raise might rationalize taking certain advantages under the notion that they are owed something.