Game Theory and Designer Clothing
Ever wonder why dress codes exist? Dress codes help to create equality among the members of a group. When certain individuals dress better than their counterparts, this creates a power imbalance. An article by author Presh Talwalkar explains the effect that wearing designer clothing has on others’ perception of you. In a study conducted in the Netherlands to determine bias, researchers gave individuals 2 euros each and assigned them a partner. They were told that if both individuals transferred all their money to their partners, then they would receive 4 euros each. Individuals were matched individuals wearing clothes without logos, and clothes with designer logos. Results indicated that people were 36% more likely to trust an individual wearing designer clothes to transfer their money.
When people saw the designer label, they assumed that the person had a higher status and therefore could be trusted to make the wiser financial decision. This decision could be analyzed using Game Theory. If two individuals were to show up at a meeting both dressed in designer clothing, then they would perceive each other as both being of the same status. If one person was dressed in designer clothing, and the other was not, then the individual in nicer clothing would be perceived as being of a higher status and would therefore have more social power. Lastly, if both individuals were dressed in non-designer clothing, then neither of them would gain more social power due to their clothing. This model for Person A and Person B is exhibited in the table below. From this table, one can see that the best strategy for each individual is to wear designer clothing, as this guarantees that they have perceived of having either equal or better status than the other person.
| Wears Designer Clothing | Wears Non-Designer Clothing | |
| Wears Designer Clothing | 5,5 | -5, 10 |
| Wears Non-Designer Clothing | 10, -5 | 5, 5 |