Game theory & social media marketing (4): Conclusions

The Royal Game of UR, Early Dynastic III, 2600BC, British Museum

[Part 4 of 4: Game theory & social media: Part 1Part 2, Part 3]

No, I’m no super lady, I don’t have no game whatsoever,
I put my high heels on and see how that goes, yeah
– Pauline, Sucker for love

Ask a mathematician why they like maths, and they will tell you that mathematics gives a definite yes or no. There is beauty in clarity. And, everyone likes to feel that they understand and have control over what is happening in their world. This feeling of certainty is reflected in the bottom two rows of Maslow’s hierarchy of needs: physiological and safety needs.

Tapping into fear and belonging

That said, we also love variety and surprise, which is the most popular information shared on social media. We crave new stimulus which is why we love games. We love the idea of chance or fortune transforming our lives for the better, and surely if we learn the rules, then we will succeed. And, that is why marketing has such a pull on us. Marketers tell us that we will have improved lives if we do/buy/or have what they are selling, and, marketers themselves will have improved lives too if we do/buy/or have what they are selling.

There are so many ways to market something, this link has 52 types of marketing strategies. The most effective, of course, aims at the bottom of Maslow’s hierarchy of needs – safety – which is why fear quite often drives news and coupled with specific instructions gives a compliant society.

Tapping into belonging is another way to market, which is why the connection economy and building friendship with your customers is gaining so much traction as a marketing strategy.

Modelling emotion and what-ifs

Modelling human emotion is impossible to do with game theory especially on social media, a fluid, still unknown, type of communication. We will never quite know who our audience is. We may target our demographic, but if they retweet or share something outside of that, then you never exactly know who is looking at your content, or how they will react to it. All game theory can do is offer interesting and potentially useful partial explanations to model a selection of what-ifs scenarios when employing different strategies.

In the last post (part 3), we looked at various game theory strategies from the aggressive to the altruistic, and saw that people generally behave like the people around them (hawk-dove) and that Kermit was in a bit of hurry to get together with his girl, which caused him to behave passive-aggressively, and probably not get what he wanted.

 Don’t be like Kermit

Game theory is a tool for social media marketing and the best application of it is recording trial and error attempts (with statistical significance) whilst using our emotional intelligence.

Be aware of your emotions and triggers (your personal competence) so you don’t get involved in a big wrangle either privately, which could damage a relationship, or publicly, which might be retweeted everywhere and could wreck your brand or reputation.  Even in the mathematics of game theory we need to understand other players moods and motives (social competence) and not assume anything. We need to ask for more clarification, so that when we do make a move, we do so with clarity and certainty that we are doing the right thing, and as any mathematician would tell you if you asked them, there is beauty in clarity for it gives us certainty and a sense of control, things which are harder to come by in our ever changing world.

Game theory in social media (1): Fate and power

Early dice made from knucklebone in Ancient Greece © British Museum

[Part 1 of 4: Game theory & social media: Part 2, Part 3, Part 4]

Humans love games. We just love playing them.

The earliest proof we have, so far, dates back to 3600BCE: Six-faced dice with coloured pebbles made from heel bones of sheep and deer have been found on archaeological digs in Assyria, Sumeria, and Egypt.

Today, a walk around the British Museum, one of my favourite places, (which you can now do on Google), shows us that places where guards sat, probably for hours, like the entrance to the palace of King Ashurnasirpal II (883-859 BC) at Nimrud, has a board and a tally scratched into the side of one of the enormous winged human-headed lions.

By the time of the birth of Christ, many types of random number generators, including dice, were common, and were used for betting on or with board games. They were often spoken of as the workers of the blind goddess of fate, fortune, or destiny. And, it says in the Bible, that they cast lots to decide how to divide up Jesus’s possessions (Matthew 27:35). Even nowadays we talk about the roll of the dice when we talk chance and the things which happen to us.

By 10th century Europe, cards were the most popular thing with which to play games. There might be some skill, but really, a lot of it is up to chance, and don’t we all know that cliche about playing the hand you were dealt?

Highs and lows on the roll of a dice

The first formal attempt at analysing games, especially of chance, was written in 1520 (but published in 1663) by Gerolamo Cardano and has been recognised as the first step in probability theory. Cardano was a compulsive gambler, so would have felt the highs and lows of the roll of the dice more than most. He was foremost in the minds of Pascal and Fermat who published a book in 1654, continuing his work. And, it was Fermat’s last theorem which remained a phenomenon until it was solved in 1994. Imagine, it took three hundred and fifty years to solve a puzzle.

Later,  writer Fyodor Dostoyevsky described our love of excitement and chance when playing games and how our fortunes can flip in an instant. He wrote about it in letters to his sister and his short novel, The Gambler. He was convinced that you needed to detach and keep a clear head, but had difficulty doing either, for it is much easier said than done. Consequently, gambling and games are ubiquitous, from church bingo to nationwide lotteries. Life can really change with a roll of the dice – or so it seems.

Game theory not gamification

It was in 1928 that the first theory of game theory was first written about by (rock star) John von Neumann who amongst many things designed the first computer architecture in 1945.

But, it has to be said, game theory isn’t the same as gamification, at all. Please don’t mix them up. Gamification is about turning things into games such as business objectives and anything else we want to make more engaging and more fun. When gamification is well designed, it works really well. But game theory is much bigger, and much more than just games.

In 1944, von Neumann and Oscar Morgenstern translated and expanded von Neumann’s theories in order to produce: The theory of games and economic behaviour. For his 1928 paper was mainly about two people playing a game together with only one winner (known as: two person game-zero sum) but game theory is much bigger than this, and it is not just about games and game playing.

It might be based in mathematics, but game theory has people in it, of course, which is why it can be used to think about everything: economics, political science and psychology. And, it has the crazy assumption that people behave rationally, which if there is one thing I know about life, people never behave rationally, nor should you expect them to. The other thing is that, we can only partially model any prescription because the world is huge and constantly changing, and we can never model everything in a computer. It really doesn’t matter how clever computers get. We have a long way to go yet when modelling humans and behaviour, but game theory is a start.

That said, power is the name of the game: group voting, economic theory and how to influence people, especially in areas like interpersonal cooperation, competition,  conflict, labour negotiations, and economic duopolies, can all be understood in terms of game theory.

Game theory for explaining social media

Social media is the big new tool of the Internet, for business, politics, etc, and as of yet, no one knows how it works. So, this series is going to take a look at some of the big hitters of game theory: the prisoners dilemma, the Nash equilibrium, and so on, to see if these strategies can help us understand better how social media works. Are people cooperating or conflicting in ways these models describe on social media? If yes, can we understand and anticipate behaviour?  If not, what other theories could we come up with?

Let’s take a look.

[Part 2]