MoneyGab Thoughtful Reflections: strategies in the game.

Assuming that one’s problem is another’s solution, it is interesting to see how the dynamics of certain situations play out.

I’m very interested in game theory. Game theory attempts to describe the behavior of individuals in a strategic situation.

The game goes:

Assumptions
Ends
Logic
Strategies
Action
Conclusion

I don’t think people are irrational, ever. Humans are like computer programs, they just execute the program that is given. If you sit down with someone and ask them why they do certain things, you’ll find that they have a very solid stream of reasoning, according to the assumptions they implicitly accept. Their assumptions give them their ends, or goals. How they reason to reach their goals is the game within the game. Now their conclusions might be totally irrational (in comparison to the environment), but their reasoning is usually flawless.

In a zero sum game, like poker, one wins exactly the amount one’s opponents lose.

Given this information, it is easy to see how, in some situations, it is to the benefit of some that you maintain your problem. For instance, dentists only get paid if you have cavities. Doctors only get paid if you are sick. Educators only get paid if you are ignorant. Mechanics only get paid if your car is broken. Financial managers only get paid if you trade. Is the world full of cheats? No, they’re just playing their game. They are actually very reasonable, given the assumptions of their situation. In their game, they want to win.

I don’t mean to be sore, it’s just important to realize how and why the game is played.

One strategy to break out of the zero sum situation is to introduce competition. When someone has to compete for your resources, they will invent new strategies to get it, which will differentiate them from others, like being an honest mechanic.

Information also brings in different variables that competitors must incorporate into their strategy, usually bringing about change in a positive direction (positive for some that is).

So, what game are you playing?

Just some thoughts. :)

-Nate

Tags: assumptions, dynamics, game, problems, reason, solutions, strategy