I am really perplexed about our conventional mathematical economics.
Yesterday night, I watched the excellent and dramatic movie ‘A
Beautiful Mind’ about the life of Nobel Prize winner John Nash. As I
finished to watch this movie, I was wondering if Nash’s affliction
of schizophrenia was worsened just because of his mathematical
obsession of finding equilibrium in the mathematical area of game
theory. Also, I found comforting to realize that Nash’s miraculous
recovery was achieved through the miraculous love of his wife
Alicia.
Game theory has been defined as thinking of thinking since as you
play a game you must think of your next move which is dependent on
all the previous moves of all the players and on the next future
consequential thinking of all the players as well. I must say that I
dislike the societal implications of conventional game theory, and
in this respect, these implications can be appreciated as we watch
today the TV series ‘Big Brother."
In this TV series, so many people live together in a house and
they play a game whereby they decide to kick out of the house one
person at a time; the winner of the game is the person who remains
in the house and who hasn’t been kicked out. Now as these people
play the ‘Big Brother’ game we realize how phony they are as they
make and break loyalties among themselves.
Is
it with the societal understanding of conventional game theory that
we want to build a better society? Do we really want a society of
phony people rather than a society of citizens thinking for
themselves? I personally don’t appreciate having other people
thinking for me, as I don’t do my thinking for others.
This very morning I received an e-mail from the business Expert
Choice and as they advertised their ‘decision making software’ it
was gratifying to have a reinforced understanding that we can make
societal and business decisions using both our individual thinking
and our individual emotions.
Expert Choice software is based on Dr. Thomas Saaty’s work on the
mathematical Analytic Hierarchy Process (AHP).
The
dynamic understanding of Saaty’s work converges with Dr. Jay
Forrester’s work on System Dynamics where any system can be
conceptualized in terms of flows and sinks. The beauty of System
Dynamics is that any system can be understood by anybody; and in
fact, it is a matter of just thinking and playing in terms of water
flowing from taps and water sinking into tubs.
I don’t subscribe to the societal implications of conventional
game theory as this theory is based on winning at the expense of
other people, that is plutocracy, democracy for the few and
privileged. Instead, I subscribe to the societal implications of
System Dynamics where everybody wins, individually and collectively,
that is democracy for all.
References
A Brilliant Madness: The Story of Nobel Prize Winning
Mathematician John Nash. PBS http://www.pbs.org/wgbh/amex/nash/index.html
Big Brother 3. CBS http://www.cbs.com/primetime/bigbrother3
Expert Choice. The Analytic Hierarchy Process. http://www.expertchoice.com/hierarchon/references/preamble.htm
MIT System Dynamics Group The System Dynamics Group was founded
in the early 1960s by Professor Jay W. Forrester at MIT. At that
time, he began applying what he had learned about systems during his
work in electrical engineering to every day kinds of systems. What
makes using system dynamics different from other approaches to
studying complex systems is the use of feedback loops. Professor
John D. Sterman is the director of the System Dynamics Group.
http://sysdyn.mit.edu/sd-group/home.html
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