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Game Theory in an online context

Remember online raid slackers?

Lack of empathy in participants makes them win less(not losing) – Morale of the history.

Game theory comes mainly in two flavours in the game context side.

  • No communication, solo multiplayer game.(Matchmaking solo)
  • Cooperative multiplayer game.(Left 4 dead anyone?)

So let’s say we got we got two strategies for both players.

  • High gains
  • Low gains

Now let’s define using some metric the different moods the players may have for each expectation.

  • Normal=1
  • Enjoying=6
  • Entertaining=3
  • Booooring=-2

Each strategy combined with the player expectations translates into a payoff matrix like this.

Payoff matrix

Lets say we see the game as a muted festival, the matchmaking system threw them together to play and everyone sucks in the game but them,that kind of player mentality.

From Player A perspective in this game context the best decision making for the game goes as follows.

If player A chooses HIGH GAINS strategy and asume player B possible choices, the best outcome for Player A is this combo(1,1).

Because Player A only have 2 choices:

(1,1) or (6,-2) and it’s assumed selfish interest and rational choices so Player A will pick (1,[1])

If player A chooses LOW GAINS mood the choices are:

(-2,6) and (3,3)

So Player A will pick (-2,6)

That means the dominant strategy for Player A is to choose a HIGH GAINS strategy.

Now it’s Player B turn.

The possible choices for HIGH GAINS strategy depending on Player A possible choices are:

(1,1) or ([6],-2)

So Player B dominant strategy will be ([6],-2)

When both players dominant strategy outcomes met you got Nash equilibrium (1,1)

But the BEST strategy for both it’s (3,3) but they won’t get it ,the second they tried to maximize their own earnings in a greed context.

So communication(or empathy) and being less greedy in your goals makes everyone maximize benefits.

When people talk, listen completely. Most people never listen.

― Ernest Hemingway

And this is why customer satisfaction it’s so important, you may switch from a non cooperative game scenario to a cooperative game scenario.

Yes ,you may be doing good in a non cooperative scenario but you would do better if you are able to turn your business into a cooperative scenario taking into account customer opinions.

Think about that.

BI + Customer satisfaction metrics.