ABSTRACT
Retirement communities are rapidly growing alternative for the aging individual as he decides what kind of living arrangement will best provide the security and supports him might need for his last years. This chapter describes the situation as one of conflict of interest between the administration and the residents, draws on game theory to elucidate a particular case and suggest its wider applicability. In game-theoretical terms, the management bets that any individuals entering Glen Brae will die according to a predicted rate. Game-theoretical analysis attempts to construct a model of decision-making under the conditions. In a “mixed-motive” game, neither player can win unless he behaves as the other expects him to do. The emphasis is on players basing their decision strategies on not only their own conception of goals and the means to their realization, but also on a complete knowledge of the perspective of the other player.
