Models without Main Players

• Published in: Modeling, Computation And Optimization pp. 97 - 114
• Main Author: Arthanari, T. S.
• Format: Book Chapter
• Language: English
• Published: WORLD SCIENTIFIC 01.04.2009
• Subjects: Game Theory; Marketing models; creative capitalism; Systems Thinking; Beating the System; Bait-ad; Game Engineering
• ISBN: 9789814467896; 9814273511; 9789814273503; 9814467898; 9789814273510; 9814273503
• DOI: 10.1142/9789814273510_0007

In this chapter we are looking critically at our capitalist market system, or at least at the models we might use to predict market behaviour and make market decisions, and wondering what happened to the main player — the consumer — in the system. Indeed, the consumer, in most models is marginalized or dehumanized if considered at all. A revisit to both the logic and the ideals of capitalism of Adam Smith and others is undertaken. Creatively reengineering the market system is the task addressed. This requires an understanding of what constitutes a creative process. Two kinds of applications of game theory were outlined in [Aumann (2008)]. In one we get insight into an interactive situation and, in the other, game theory tells us what to do. Aumann calls the second kind of applications, game engineering. Organisational systems gurus, Russell Ackoff and Sheldon Rovin explain how to outsmart bureaucracies in their celebrated work ‘Beating the System’ [Ackoff and Rovin (2005)]. What is common between game engineering and beating the system is creativity. We apply this understanding to games played in the market place. This leads us to consider thought experiments, social dialogues, and models that stipulate the rightful place for the consumers as main players.