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Game theory and strategist
Recently, I read the book Game Theory, and suddenly I remembered my favorite history. I advised the King of Qin during the Spring and Autumn Period and the Warring States Period, and I was a disciple of Guiguzi and a strategist of Qin State, Lian Heng.

Why do you think of Zhang Yi? Because I find that he is a person who plays game theory to the extreme, so I must understand game theory first.

What is game theory? Game theory refers to the theory that two or more parties fully understand the information of all parties in the case of competition, cooperation and conflict, and then choose an optimal decision that can strive for the greatest benefit for themselves. Game theory has four elements:

(1) There are at least two participants, which is easy to understand. How can there be games without opponents? And it must be a rational participant.

(2) Interest is easy to understand. People all seek advantages and avoid disadvantages. The world is bustling for profit, and the world is bustling for profit. If it is not beneficial, who will play with you?

(3) What do you mean by at least two strategies? Everyone has at least two choices on the road of pursuing interests. If there is only one, there is no need for strategy. For example, buying a dress is too expensive but breathable, beautiful and cheap, but too breathable, and people have to think about it, so the game was born.

(4) information, which refers to the basis for formulating strategies. We will definitely make a strategy based on the existing information, and so will the other party, but what we often encounter is that the information of both parties is not equal. Only by better understanding each other's thoughts and information can we be more sure of our own strategy.

If these are too abstract, then give an example. The two shopping malls in AB have always been peaceful, and even if there is competition, they are all profitable (10, 10). However, mall A wants to rob B's mall by reducing the price. Although the unit price decreased, the overall profit increased to (14,5). However, when shopping mall A really did this, B couldn't sit still and reduced the price. As a result, the unit prices of the two stores were reduced, but the number of customers remained unchanged, reaching (8, 8). Both stores lost money. If one of them understood game theory and communicated with the other, such a thing would not happen. Therefore, learning game theory well can make you create wealth, although it will not bring you wealth directly.

Let's talk about Yi Chang again. As we all know, at that time, Chu was on good terms with Qin, and Qin did not dare to move eastward. So King Huiwen of Qin sent Yichang to the State of Chu to see Chu Huaiwang, saying that the State of Qin was willing to make friends with the State of Chu and offered the State of Chu 600 Li of land as a sign of sincerity. The king of Chu was overjoyed and immediately broke off diplomatic relations with Qi. Perhaps he can calculate such an account: Qin is stronger than Qi, and it is obviously a favorable choice to form an alliance with him. But he didn't know that the interests of Qin and Chu were different. If Qin cheated Chu, it would be caught between Scylla and Charybdis. So yi cheung's goal was achieved, and he also humiliated the Chu ambassador with six miles.

It is painful to fall into game theory, so we will let each other fall into game theory. The game that Zhang Yi invited the King of Chu to play was wonderful, because it was in line with the decision of rational people. However, because the king of Chu didn't know the idea of the king of Qin, the information was not equal, and the most important thing was to maximize his own interests, which led to the king of Chu making a wrong decision and letting Qin break the alliance successfully.

Actually, I want to say one more thing. The reason why these two examples are given is to illustrate a fact revealed by game theory, that is, rational decisions made by rational people often lead to irrational results. If a person always pursues the maximization of his own interests, the result may be drawing water with a sieve.