Discussion in 'BlackHat Lounge' started by Scipio00, Feb 16, 2012.
I think I will order a new book on game theory. Thats all I can think after reading what you wrote.
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.
People set prices for a reason. I think you are generalizing your situations and omitting many variables.
I will like to quote Seth Godin here.
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.
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.
having been a professional gambler for seven years all I can tell you is,
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
good that you played poker too man!
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