Presuppositions of The Game Theory Soloman believes that as the game theory gets more sophisticated, we tend to lose sight of the problem rather than solve it. He sees the problem as how to get people to think about business and about themselves in an Aristotelian rather than a neo-Hobbesian (or even a Rawlsian) way, which the game theoretical models simply presuppose. Soloman discusses seven presuppositions in the first section of his "Ethics & Excellence" book. They are: rationality and prudence; motivation and self- interest; money and measurement; the anomaly of altruism; good and goals; the open-ended playing field; and the role of the rules. Soloman rejects each presupposition and gives his reasons why. This essay will discuss two of these presuppositions and either agree or disagree with Soloman and then give reasons as to why. The two presuppositions that will be discussed are money and measurement and the role of the rules. Money and Measurement In business, as in most games, we like to keep score. As one of Soloman's businessman friends told him "in business you always know how well you are doing. You just have to put your hand in your pocket." People often think the more money one has, the happier they are. You often hear people say "if I only had more money, I would be happy." Frequently the perceived level of success is compared to the size of one's bank account, the location of their house or the amount of cars in the driveway. People seem to perceive money as being happiness. Soloman says that keeping score, although it is not an essential feature of games, seems to be one of the most durable features of game theory. He thinks that the best way to keep score is to have a dependable point system, a definite unit of worth, which is money. Soloman rejects this presupposition by first stating that "money isn't the only or even primary social good", and "money is only a means and not an end." Soloman agrees with these statements but to further reject this presupposition, he goes on to discuss another example involving money. Social theorists, in general, "like to talk about money, because money is a readily measurable utility, a readily comparable measure, and apparently clear basis for comparison." But even some of these unrefined theorists recognize that equal amounts of money do not have equal significance for different people, therefore money is not an absolute readily measurable utility. Soloman states that various ends are hard to compare and so success and "maximum utility" may be hard to measure. "If we were to assign every end a monetary value, however,
One of the first examples of a war game played occurred in the 1980’s and involved the long standing Cold War with USSR (Mark Herman). Those of us who remember these tenuous times recall the ever present...
The game of poker is a card based game, which has developed into many various kinds, in terms of the number of cards dealt, how many cards are on the deck visible for all players, and what remains hidden, over the past few decades. Despite its differences, poker of any kind shares one major significance; the factor, that either sets one winning or losing, is based upon decisions made in the long run. The utmost degree of such decisions resemble economic components, since the most elementary acts, such as raising the bets and folding one’s cards, may be regarded as a case of supply and demand. And one of them, which is the topic of this essay, is Nash Equilibrium, commonly used in games with no more than two players involved which is also known as „Heads Up“. Nash Equilibrium sets two players, with the very same count of chips, against one another in a situation where each player can either bet, all of his or her stack only, or fold. After this particular match is finished, the players‘ stacks are equilibrated again and this whole process is being repeated for sake of the long run. This algorithm is also known as „Fictitious Play“ (Dudziak, 2006). Most importantly each of the players ought to take in consideration the opponent’s decision, based on which they reach a convenient consensus, meaning, in order to maintain Nash Equilibrium, they both must correctly presume the upcoming action (Osborne & Rubinstein, 1994). Thus it is foreseeable that one or the other side, oftenly, faces a difficulty while striving for an equilibrium.
of the problem he is trying to solve, and when he tries to avoid the
Ever since you were a child you have unknowingly used game theory. When your parents gave you the option to choose a candy bar, your brain started thinking of all the possibilities that depended on which candy you chose. You would think which one would taste better, make your feel better, and maybe be healthier for you. In the end, you would narrow your choices down to one piece of candy and eat it happily. Game theory is the use of theory to think through all of the positive and negative possibilities that could happen in a problem and try to maximize the positive. Game theory is not just one theory, throughout the years is has spread into six main games. These games are: zero sum games, non-zero sum games, simultaneous move games, sequential move games, one-shot games, and repeated games. Each of these games will be covered more in depth in this essay, with the exception of zero-sum games. Dalton will be writing about the zero-sum game in his essay.
Cengage Learning, Inc. Quantitative Methods for Business. Copyright 2010. Introduction to Game Theory page 166
mechanics in this game, make sure you should avoid to commit a mistake, make the opponent
People need money to live, and enough to buy the basic goods one needs to survive, but everybody wants more money. More money means an easier life. The more money one has, the more money one wants, as is shown in the story, "The Rocking Horse Winner" by D. H. Lawrence.
When none of us has ever come across such words and formulas, none of the great personalities has ever mentioned it, then who the hell has instilled it in our minds that money brings happiness. But among this debate one question still raises its head - What is happiness? Happiness is not actually leading a luxurious life but the luxury of living a life. Happiness is not actually about expanding your business, but it lies in expanding the horizons of life. Happiness is not having a meal in the most famous restaurant but to have it with your most beloved family. It does not lie in attending honorable parties but to attend a party with honor.
Rules for how games should be played also dictate success, another aspect that defines a sport. In the video game Overwatch, there are 24 playable characters with different skills and abilities. In competitive gameplay, a team is only allowed one of each character. This rule helps form a specific division of labor that is essential to winning a game. A typical way to build a team is two healers, two damage-per-second (DPS) players, and two tanks. One of the game modes in Overwatch sees one team moving a payload across the map to an endpoint, where the other team defends and tries to stop them. Similar to baseball, the teams then switch roles and the team with the most points (farthest distance moved) wins. For every win, a player gains points and can move up the ranking system, from Bronze all the way up to Grandmaster. How these points are allocated starts with ten placement matches, where based on performance, a player is placed in either Bronze, Silver, Gold, Platinum, Diamond, Master, or Grandmaster. From there, players compete against each others with similar rankings like how baseball players are put into certain leagues, A, AA, AAA, or the majors. If a player was to leave one of the matches before it is over, they are penalized ranking points and can face timed bans. Overwatch displays how eGaming is not chaotic and has the ranking systems, roles,
John F. Nash, Jr was an American mathematician mostly known for winning the Noble Prize back in 1994, the prize was for his landmark work of Economics. His differential geometry and partial different methods to equations have provided understanding into the forces that govern chance and events inside complex systems in our daily life. John’s concepts are used in market economics, computing, evolutionary biology, and artificial intelligence, accounting and military theory. He was a senior researcher mathematician at Princeton University in New Jersey, later in his life Nash, shared his Noble Memorable Prize in Eco Sciences with game theories with John Harsanyi and German mathematician Reinhard Selten . The game theory was developed to understand
Game theory is now prevalent in society; it's applied in economics, political science, psychology, and computer science among other things, in the defined fields, the theory was/is imperative to their development. Game theory affects the daily lives of everyone, prices are/can dependent on game theory, game theory can affect how laws are structured, aspects of computing are influenced by game theory, and that's just the tip of the
Many social interactions we encounter on a daily basis that involve personal decisions simultaneously involve decisions made by others that affect the overall outcome. Any situation in which the outcome is dependent on the choices of two or more people is what defines an interactive decision. Game theory studies the human behavior involved in these strategic settings, which surround the interactive decisions. In order to label a social interaction a game there needs to be two or more decision making agents, called players, each with two or more options to act upon, called strategies, and a clear understanding of what each player’s preferential outcome is that are associated with numerical payoffs (Colman, 2016). For example, when two people
..., a person who earns $25,000 is happier than a person who makes $125,000 and an employee who makes $500,000 is only slightly happier than someone who makes $55,000. Lastly, there are more important things in life that and make you happy, for example, friends. They don’t come with a price tag, and if they do, you definitely need new friends. Money won’t make you happy since good times can’t be bought. You don’t need a fancy vacation to have a good time; it’s just a matter of who you spend it with. Over the years, humans have blown the value of money way out of proportion. People make it seem like if you’re not filthy rich, then you won’t live a good life but it’s not true. You can lack money and yet still live a perfect, happy life.
I never really thought the expression, “money can’t buy happiness”, was true. As an infant, just by observing the people around me, I observed when they would obtain money and a huge grin would spread across their face, the corners of their smile spreading from ear to ear. Whenever I would see that grin and a person’s face light up at the sight of a crisp, green bill it would make me believe that I had proved the famous expression wrong. Now that I’ve grown up and matured, my idea of that expression has changed. As of now, I am able to reflect on life more and look deeper into things and particularly into people more than I was able to do years ago. My ideas about this expression changed the most though because of the money situation my family had stumbled upon because of the failing economy. I remember being younger when the economy was doing well and waking up to twenty gifts for each of my three sisters and I. We used to believe that all of those presents, brought in because of money of course, were the best part of waking up on Christmas. Of course all of those toys and material items would make a child happy; however looking back it would only make them happy if it was given to them by somebody who bought it for them with love.
Money and Happiness are two things that we have all given a lot thought. We put lots of effort into these two things either trying to earn them or trying to increase them. The connection we make between money and happiness is strange because they are two very different concepts. Money is tangible, you can quantify it, and know exactly how much of it you have at any given time. Happiness, on the other hand, is subjective, elusive, has different meanings for different people and despite the efforts of behavioral scientist and psychologist alike, there is no definitive way to measure happiness. In other word, counting happiness is much more difficult than counting dollar bills. How can we possibly make this connection? Well, money, specifically in large quantity, allows for the freedom to do and have anything you want. And in simplest term, happiness can be thought of as life satisfaction and enjoyment. So wouldn’t it make sense that the ability to do everything you desire, result in greater satisfaction with your life.