Noah Healy joins us in today’s episode to discuss game theory. Noah is a game theorist.
A game theorist is a researcher who studies strategic decision-making. They use mathematical models to analyze situations in which individuals or groups make decisions that affect one another, such as in markets, political systems, and social interactions. They try to understand how these interactions lead to certain outcomes and how different strategies can lead to different outcomes. They also use game theory to study decision-making in situations where there is uncertainty or incomplete information, such as in negotiations or military conflicts.
Game theory is increasingly used to study and inform decision-making in the technology industry. One key area where game theory has been applied is in the study of network effects, which occur when the value of a product or service increases as more people use it. For example, the value of a social network increases as more people join and connect, and the value of a search engine increases as more people use it to find information. Game theorists have used models to study how network effects influence competition in markets for technology products and services.
Another area where game theory has been applied is in studying pricing strategies for technology products and services. Game theorists have used models to study how firms should set prices for their products to maximize profits, considering how competitors may respond to different pricing strategies.
Game theory is also applied in studying digital platforms, which serve as intermediaries between buyers and sellers in digital markets. Game theorists have used models to study how digital platforms affect competition and market power and how different business models and rules may influence the behavior of firms and consumers on the platform.
Additionally, game theory is being used to study and inform decision-making in the field of cybersecurity. Game theorists have used models to study how firms and governments should allocate resources to protect against cyber attacks, considering the potential costs and benefits of different strategies and the actions of potential attackers.
Overall, game theory provides a useful framework for understanding and predicting strategic behavior in the technology industry and can inform the design of policies and business strategies to promote competition and innovation.
This episode even brought up artificial intelligence, deep fakes, and a host of other interesting topics. You are going to want to listen to or watch the entire episode!
Reaching Our Guest – Noah Healy
Noah Healy is a game theorist working on better economic systems. After training in nuclear engineering, he worked for tech startups. Studying the mathematics of computation led to patent work on a better market design.