Thursday, May 6, 2010

Game Theory - Or How Playing by the Rules Results in Defeat

When it comes to almost every element of life, there is a tragic reality that playing by the rules isn't going to lead you to victory. It's a tough lesson that we try and teach children the opposite of, but unfortunately, it quickly becomes evident that it is the case. The reason for this challenge is that even if you are willing to play by the rules, there is always someone going against you who is willing to break them.

The challenge here lies in a similar problem that is seen in interrogations of criminals. When you place two criminals in separate interrogations, each one will fear that the other is going to rat them out. As a result, each criminal will rat out the other so that they are not the only one losing. In much the same way, many people, in fear that their opponents are not playing by the rules, will also not play by the rules.

This problem becomes a circular challenge. By fearing that your opponents won't play by the rules, you yourself won't play by the rules, thereby validating the same fears in them. However, strategy-wise, cheating offers the best course of results. If you cheat and your opponent doesn't, you have an increased chance of winning. If you don't cheat but your opponent does, you have a decreased chance of winning. Finally, if you both cheat, you have an equal chance of things turning out well for you.

As a result, it seems the harsh reality of things is that playing by the rules simply doesn't benefit you. To optimize your performance, it is ideal to break the rules, as there are no circumstances in which this can penalize your performance.

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