All posts tagged: economics

Game theory lessons in life

In yesterday’s class of game theory, I learnt one of life’s most important lessons, proven mathematically. It is a generalization of the Shooting Game to life and business, and I’ll try to keep it as non-technical as possible.  If you’re not already familiar with the term, game theory is a subset of economics that assesses the behavior of people in situations where the result (outcome) of their actions (strategies) is influenced by the actions of other people (players). The most widely known example of a game is the Prisoner’s Dilemma. The Shooting Game is a zero sum game, implying that co-ordination is never possible. When one player wins, the other always loses. The game takes place as follows: “Each player has a pistol loaded with only one bullet. They stand 10 steps apart and walk towards each other, at the same pace, one step at a time. After each step, they can choose to fire their one bullet at the other player. The probability of an accurate shot increases with each step, as the players …

Role models

Can you think of one person you idolize, admire and want to be like? Someone who has given you hope in life, perhaps a goal, someone who makes you feel like your dreams are not so far-fetched, after all. Last night, I was filling out an application form, and the first question asked me about my role model in life. Only one name came to mind. Maybe on some level, application forms aren’t such bad things after all. More often than not, they make you reflect upon your aspirations and your stances in life. Here’s what I answered: ‘When the world was busy running up corporate ladders and minting money, one man rose up to the challenge of poverty and pledged to create opportunities for the poor. Professor Mohammad Yunus. For me, he is the epitome of social entrepreneurship. What started as a US$27 loan is today a flourishing micro-credit industry, so alluring that even corporations are seeking to exploit it! Professor Yunus struggled against the conventional banking system, upheld his conviction in the credit-worthiness …