Game Theory in Internet Marketing

Discussion in 'BlackHat Lounge' started by Scipio00, Feb 16, 2012.

  1. Scipio00

    Scipio00 Regular Member

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    Last edited: Feb 16, 2012
  2. Buzzika

    Buzzika Supreme Member

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    I think I will order a new book on game theory. Thats all I can think after reading what you wrote.
     
  3. smallgiant

    smallgiant Regular Member

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    Someone plays too much poker and probably doesn't get that game theory only applies truly at macroeconomic scales. Your taxi driver only cares about himself. He doesn't want half his rate. He wants the entire rate.

    Game theory. A can of worms to truly discuss and break down. Now I'm just having horrible memories of biological altruism and global oligopolies.
     
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  4. nojrellum

    nojrellum Newbie

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    People set prices for a reason. I think you are generalizing your situations and omitting many variables.
    Good luck.
     
  5. Buzzika

    Buzzika Supreme Member

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    I will like to quote Seth Godin here.

     
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  6. spruitje

    spruitje Junior Member

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    With the website selling example you overlooked the fact that even though you'll probably never see the other party again your reputation may suffer (kinda like the itrader system on BHW) and thus the EV of future rounds. Furthermore you should not underestimate the power of customer loyalty: sell him the first site for 1000, especially if he is willing to go as high as 1200 and chances are he will come back for more. Depending on your profit margin, you could see a greater profit even if he only comes back once. So by trying to maximize the outcome in game 1 you could be blocking the path to a profitable game 2/3/4 etc.
     
  7. tony23

    tony23 Regular Member

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    As a former taxi driver I would think 'cheap cunt'....but I do like game theory, some people think you can run the world by it.
     
  8. Lebron2727

    Lebron2727 Junior Member

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    having been a professional gambler for seven years all I can tell you is,

    read Sklasky....

    it there is a 50% chance for a less than 10% increase in payout shall I take it even if it kills the original offfer, made me lol



    yesterday i was discussing game theory with a friend, game theory and internet marketing actually have a lot of common ground... i hoped that you were talking about that :)
     
  9. Scipio00

    Scipio00 Regular Member

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  10. Lebron2727

    Lebron2727 Junior Member

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    good that you played poker too man!