Tag: game theory

Data: The Ultimate Shared Asset

On April 29, 2011

People always ask me how The Value Game will work and how The Value Game will scale, and how The Value Game will make money. These are great questions, albeit straight from the b-school crib sheet; good questions nonetheless.

At first glance, The Value Game as we are deploying in Social Flights looks like a rich kids party barge. The idea is that people can share an airplane just like they did with that stretch limo on prom night. Yes, the idea is the same – the jet is a shared asset and status on prom night is special.

The Value Game also produces a lot of very important data that is owned by the players. So when the passengers arrive at their destination, their data can now transform the hotel into a shared asset. As such, a new Value Game plays again. If the players own their data, and they only share it with the other players in the associated Value Game, they can command substantial value for the collaborative purchase of hotel rooms – or any shared asset.

Likewise, the players will need restaurants, tour guides, golf courses, concert tickets, entertainment, etc. Their data – if they own it – is their discount coupon…like a Group Coupon, except relevant to the need and exercisable on-demand. By the time the trip is over, their Value Game data can result in hundreds or thousands of dollars in discounts for the individuals in a travel tribe if, and only if they own their data.

The next time they want to take a trip, their data is not only a discount coupon; it becomes a passport to opportunities that money cannot buy. In the End Game of the Value Game, data are the shared asset. This works if, and only if people own their data and they can share or restrict it from view of others.

Seriously, think about that for a minute.

You give your data away for free. Companies collect this data and they have no intention of sharing it with you. Data is a multi-billion dollar industry. Why?

Aren’t most life lessons about figuring out who is NOT playing The Value Game and avoiding those people and situations?

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Can Advertisers Curate Themselves?

By Admin

On March 18, 2011

In General Information

Get Real by Playing for Real

At the end of the day, any ad campaign needs to get real people to take real and tangible action. Ideally, the advertiser wants to see the real effectiveness of a campaign in real numbers.

The Value Game is applied to a new jet charter start-up called Social Flights and offers an opportunity for advertisers to become part of the experience of the traveller, rather than a distraction to everybody. Instead of paying a website for click throughs, the vendor can pay the traveler directly to “click through” a catalog of products. As long as your product is relevant to the travel experience, the traveller will be interested and engaged.

The Game is to be relevant and this is where Social Flights helps create the playing field.

Social Flights will collect data about a travelers intentions in a fully open agreement. Travelers submit this data to the game with the explicit understanding that vendors will compensate them with relevant discount coupons. Data are normalized so that the traveller is anonymous in every respect while still providing very rich intentions to the vendor. Vendors can now target their value proposition with great precision.

What’s a Travel Trader Game?

This sets up a game where the traveler, when presented with many options, will plan their trip and influence their friends based on the perceived value of the options presented to them – it’s like holding properties on a Monopoly(TM) Board. As the travelers play the game, the vendor is being discussed, researched, and propagated all across the web in real time and in real context with a tangible experience as the travelers decide what activities to pursue.

Win twice: Let People Game the Game

When someone “clicks” on the vendor proposition from their “experience environment” of travel, their intention to be interested, informed, entertained, and fulfilled by your product is much higher than in a off-experience “forced” impression. When they compare, and even trade, coupons with their friends, a negotiation happens which influences a group of people. These negotiations lead to discussions all across the Internet. These discussions mean different things to different people so a fresh pool of customers is always on tap for the next round of play.

Why let Facebook own YOUR game when you can own it yourself?

Social Flights allows travelers to sell their data to vendors who, in effect, compensate the traveler with discount “option” that can only be exercised if the traveller (and their friends) makes a purchase. Advertising is essentially FREE until the traveler exercises their discount option. Even then, the advertiser has all the information that they need to determine the quality of the effectiveness their campaign and the effectiveness of a competitor’s campaign. No matter whether you are the traveler or the vendor, how you play the game becomes YOUR intellectual property. Patent that Facebook!

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A Grand Central Value Game

By Admin

On March 7, 2011

In General Information

Few people realize that there is nothing new about the Social Graph. Facebook did not invent it – in fact, Graph Theory is a branch of discrete mathematics that was first developed back in the 1700’s by a Swiss Physicist named Leonard Euler.

Likewise, Zynga did not invent Game Theory. Again, Game theory is a branch of Applied Mathematics with origins dating back to the 1700’s in a paper by James Waldegrave.

A Graph Theory and Game Theory Mash-up

It follows that The Ingenesist Project is not the first to mix graph theory and game theory to form A Value Game. While I cannot pinpoint the first example of this, I did recently find an article in American Heritage Magazine Invention and Technology magazine about what appears to be an excellent early example of A Value Game.

Not So Grand Central Station

In the late 1800’s, New York City’s Central Train Station was clearly not so grand. It amounted to a huge surface train depot with dozens of parallel lines and platforms covered by a huge structure that filled with smoke from the old steam engines. The train yard bisected 17 blocks of neighborhoods where soot and ash rained everywhere. The station created widespread urban blight and health issues for dozens of city blocks surrounding the terminal.

Politicians and the Railroad Companies tried to correct the problems but every proposed solution created ten more problems. Too many trains, not enough land, technological struggles, funding, traffic, property values, pollution, safety, collisions, politics, noise, fires, were only a few of the problems in conflict.

A Grand Central Value Game

Today, Grand Central Station is a model of ingenuity resulting from a brilliant and engaging solution to a complex problem. A remarkable Engineer named William J. Wilgus had created something that looks a great deal like a modern Value Game.

Three Dimensions to A Value Game

His first challenge was to pay for the construction of a new station. His second challenge was to build the station without closing the existing station. His third challenge was to not use any more land.

His solution was to bury the station. He made the walls of his underground structure strong enough to support large buildings (now skyscrapers) above. He then used the huge real estate market gains to finance the project

Grand Central Valley Game:

In this case, the very important railroad station was the shared asset. Player 1 was the community (politicians) surrounding the station, player 2 was the real estate market, and player 3 was the railroads. Each acting in their best interest collaborated to arrive at a solution to what was considered an impossible problem.

With the advent of Social Media and collaborative gaming technologies, “Value Games” may be created to solve many of the world’s most complex problems while also releasing vast amounts of value to a social system simply by reorganizing the same players on a three dimensional playing field interacting around any shared asset.

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How To Play The Value Game

By Admin

On February 22, 2011

In General Information

The Value Game is a new class of business methods that converts financial currency into social currency and vice versa. The benefits of the Value Game are innumerable since social currency is the only true alternate means of storage and exchange for value that can hedge a weakening dollar.

The rules of the game are really quite simple

The Value Game Starts and ends with Dollars (financial currency)
All new value is created within the game is denominated as “Social Currency”
Value is created from 3 or more communities interacting with a shared asset

How to build a Value Game

In order to build a Value Game, the social entrepreneur finds an asset that people are willing to share, and then identify three or more communities whose interaction with the asset creates social value. The following are 3 Case studies currently under development at The Ingenesist Project:

Example 1: Social Flights is a new startup that aggregates private jets and deploys them to the social graph.

The shared asset is the Jet.
Player 1 is the traveler,
Player 2 is the charter operator
Player 3 are Local vendors who issue discount coupons against the airfare.

The traveler creates “time-value” by avoiding commercial aviation and developing their social graph. Charter operators penetrate underserved markets. Entrepreneurs supply relevant services to a known client instead of advertising.

Example 2: High Net Worth Individual (HNWI) Reputation Management System. This business method helps influential persons improve their reputation in a community.

The shared asset is a shared reputation.
Player 1 is a HNWI.
Players 2 are the community organizers associated with a social cause.
Player 3 are social media gurus.

The HNWI adopts a social cause by exerting their political/financial influence in favor of the cause. The Social media guru uses this content to demonstrate their ability to move search engine results, which enhances their on-line influence. The community organizers receive social influence, managerial knowledge, and financial support for social cause.

Example 3: Collaborative Production. A Socially Important Film Project needs $250K to fund production and estimates 5 Millions views at distribution.

The shared asset is the final product film
Player 1 are the film producers
Player 2 are the Community that will benefit from the film’s production
Player 3 are product vendors selected by the community

The community provides detailed demographic information about themselves and their buying habits and the film producers processes these data for anonymity. The film producers sell $1K options to 250 select corporate vendors for the right to issue a “Groupon-like” device to the 5M viewers of the film. Select vendors use the demographic data to target their message. The people who fill out the demographic surveys can purchase the Coupon for themselves or sell to other people for profit. Sales occur in lieu of advertising. The interaction between these communities produces social value in favor of the vendors, the film producers, and the benefit community.

Gaming The Game

As people learn to build The Value Game, they will innovate new and increasingly creative ways to leverage shared assets and interact with communities for profit. Given the magnitude of the financial problems in the US, several hundred thousand Value Games will be needed to provide people with their daily needs for education, health care, municipal services, energy, transportation, food, etc. After a while, the need to return to dollar currency will diminish as the value of the dollar itself diminishes under the weight of the impending debt burden. As such, The Game will be Gamed by The Value Game.

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The Value Game Cracks the Monetization Paradox

By Admin

On February 20, 2011

In General Information

The Value Game is becoming increasingly generalized as more entrepreneurs seek to learn how to apply it to new economic realities. The first company to launch is Social Flights. Quickly funded, in full operation, booking jets and signing contracts, the Social Flights success trajectory has been truly remarkable.

The Ingenesist Project is deploying several more applications of The Value Game. Our next venture is to develop Reputation Management for High Net Worth Individuals (HNWI). Here’s how it goes.

The Social Influence Game:

Player 1: At some point, the government is going to stop supporting many very important social programs such as schools, health care, child care, retirement benefits, and possibly even close the charitable tax deduction. In order to survive, social causes will need to come up with new forms of support or fund themselves with a new form of currency.

Player 2: Many politically and financially influential people in communities are finding that their “Google Results” often tell a story that is less than flattering. Some have old lawsuits, unpopular business associates, or just too much personal information that presents a skewed picture of how they actually feel toward their community. It is risky, difficult, and expensive to change Search engine results and it is nearly impossible to “control” what other people say.

Player 3: Legions of Social Media Gurus have long learned to aggregate and influence markets using social media platforms. They have learned to match knowledge surpluses to knowledge deficits as a means of building their own online reputation and influence. Many Social Media Gurus have achieved a strong Social Media Presence, which supports book tours, lecture series, personal brand image, or corporate clients and sponsorships. They constantly seek new content.

Converting Political Currency to Social Currency

The Social Influence Game will match HNWI with Social Causes where the HNWI can exert their political and Corporate currency in exchange for Social Currency. Many HNWI have a powerful lifelong network of other influential people from whom they can find advice, mentorship, assistance, or discover goods, services, or physical inventory that may become useful and available to a struggling social enterprise.

Social Media Gurus who make these connections will blog, comment, and promote their ability to match power surplus to power deficit. Internet Search results will redraw the Social Graph.

Holiday Shopping For the New Millennium

In practice, HNWI can “Go Shopping” for social causes. When they find one that suits their talents and passions, they will be able to see what that organization needs; beds, food, heating oil, legal advice, CEO mentor, someone to lean on the land lord or even exert a position with the local government, etc. The HNWI then will pull out their lifelong Rolodex of powerful persons and exert their influence in favor of the social cause through the interpretation of the Social Media Guru.

Winning The Game:

After a short while, Google will start pushing the old search results of the HNWI farther and farther down the page as the tweets, comments, and blog posts accumulate. The Social Media Guru will find gold in their own backyards instead of Corporate Astroturf. Social Causes will achieve their mission while managing new resources and earning important new friends.

Perhaps most importantly, the HNWI community will collaborate in order to sustain their Social Currency in the community. They will begin to bias their personal and professional actions in favor of social priorities over Wall Street priorities.

In Short, everyone acting in their own best interests benefits the interests of everyone. This is Social Capitalism. If it works well enough, maybe we can finally put those pesky social causes out of business.

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Game Over

By Admin

On February 2, 2011

In General Information

The first law of Gaming: If you can’t win a game playing by the rules, stop playing the game, or change the rules. It would seem that Egyptians would add a corollary “Change the Rulers”.

This is not trivial.

Billions of people are walking the planet Earth with the nagging feeling that they cannot win their game playing by the rules they are given. If America was once the shining beacon of opportunity where hard work and perseverance were the main ingredients of success, and Americans are feeling that they can’t win playing by the rules, then you can expect two things to happen: People will stop playing the game, AND the rules will change.

Interactive Entertainment

Looking on the sunny side, we see Gaming companies achieving astonishing valuations in Silicon Valley. What is even more remarkable is that a similar thing is happening concurrently with Travel, Coupons, and Alternate Currencies. Many people stand back aghast at the sheer size of some of these bets; $120M for Tripit, $5B worth Zynga, $6B for Groupon, $50B for Facebook. The Market capitalization of Apple ($320B) is almost 2 times greater GDP of Egypt ($188B).

It would be foolish to underestimate the value the gaming component – now called “Interactive Entertainment” – as enabled by the Internet. Gaming is an extremely mathematical science where designers predict the probabilities that a player will favor one strategy over another. The better these prediction become, the more interactive and, ostensibly, the more entertaining a game becomes – at least to some people.

The Calculus of Gaming

It is no coincidence that the calculus of gaming and the knowledge assets deployed to the gaming industry are functionally identical to financial and marketing industries such as banking, insurance and demography. Banks set the price of money based on the probability that you can pay it back (credit scores). Insurance companies set the price on premiums based on the probability that you will experience a loss (actuarial data). And Demographers predict what you will buy and who you will vote for. After all, a Bank is really just a game that bets that you will win and an insurance company bets that you will lose, and demographics keeps the game, well, unfair. But together, they all hedge each other’s risk, not yours.

Watch The Integration, closely

From prior articles; The Travel industry is a proxy for how and where ideas are spread. The Coupon Industry influences human behavior to accelerate the disruptive innovation and to create new value simultaneously. The Gaming Industry will define the rules by which the new game will be played and provide the ability to predict when, where, and how to value social capital. When the integrated is complete, the ability to capitalize and securitize a new social currency (next article) will emerge to hedge, and then replace, the dollar.

Game over.

***

(Editor’s note: The above post is #4 in a series [1], [2], [3], [4], [5] introducing The Value Game to a new class of business methods. The first real world application is Social Flights; a collaborative production / consumption game being deployed to the market. If this works, the new business method class will be generalized throughout the economy to catalyze the convertibility of social currency. Please join us at The Future of Money and Technology Summit in San Francisco on february 28th 2011 where we will unveil the work to the technology community)

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Social Value is Social Enterprise

By Admin

On November 15, 2010

In General Information

The fastest way to unleash the extraordinary value that is contained in communities of experienced, talented, and motivated people is to provide a substrate for them to trade their knowledge assets among each other. When people get together around a purpose, they build things that create incredible social value. The Social Value Platform provides an electronic accounting system for social value. In The Social Value Game, vendors deposit inventory into a strategic community of people and the community creates social value. This new social value is then converted into monetary revenue in the next economic paradigm called Social Capitalism.

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Banks In The Future

By Admin

On October 29, 2009

In General Information

Bankers don’t care about money, they care about the rate of change of money. At The Ingenesist Project we are not entirely interested in change – we are entirely interested in the rate at which things change. As you can imagine, we get all giddy when we see the rate at which the rate of things change…that’s all that banking is and all that banking ever will be.

Each of the Facebook Applications posted below are to Facebook what The NYSE is to Commercial Banking. Note that Facebook is growing at an astonishing rate. Now, these applications – on top of Facebook – will increase the rate of change of the rate of change in how people communicate, transact, organize, and deliver conversation.

You are hearing it here; these innovations are the most significant disruption that Wall Street can’t possibly imagine. Money is a social agreement and these are the banks of the future. Although many come from the gaming industry, many games are modeled after the real world, therefore, transition back to the real world is not as difficult as one may think. If people are willing to trade it, it becomes money. This is serious business. While many of these new innovations are on the right track – not all of them will survive.

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It Takes Currency to Make Currency

By Admin

On August 11, 2009

In General Information

If you’re a Flash game developer, you are concerned with how you can make a living from your creative and intellectual services. Fortunately there is a payment system so workable, that it may actually work. Game developers can charge money both for their games, and for things within their games.

Here’s how it works:

1.   Player pays real money to buy fake money within the game.
2.   Player spends fake money on virtual stuff.
3.   Virtual stuff increases the value of the game.

The game developer can technically charge for whatever they like: level packs, hats, extended versions/director’s cuts, etc, etc. The sky’s the limit.

These types of transactions have been very popular in places like Korea for a long time, and it was amusing to see the initial resistance and resentment in North America to the idea. Meanwhile, North American Pioneers of such systems are drowning in money.

The Right [virtual] Stuff:

Now, suppose that Social Media could be modeled after a huge game where people act based on a set of incentives like, say, connecting with friends, accumulating followers for their blog, finding proverbial “gold rings” like employment opportunities, business opportunity, spiritual growth, professional advice, cheap airfare, fun things to do, product reviews, or political activism…just to name a few.

Suppose that in order to get from one level of the game to the next, they need to engage in conversation with another player. Anyone who has been on Linkedin, Twitter, or Facebook long enough knows that the “right virtual stuff” is sometimes hard to acquire. Twitter finally broke the mold with applications that now “sell” followers (I wonder if there were any Flash Developers behind this innovation).

A Mutually Inclusive Game:

Now, suppose the game was mutual such that some players need you a little bit more than you need them and they are willing to invest in your connection. Similarly, suppose you need some players a little more than they need you and you too are willing to invest for their connection. Finally, all players know that a mutual link between two appropriate players substantially increases the value of both players relative to the game.

It Takes Currency to Make Currency.

Immediately the engine of entrepreneurialism will ignite as people figure out new ways to play the game. With a trillion dollar advertising industry, a trillion dollar Professional Placement industry, and a trillion dollar recreation/leisure/entertainment/family industry on the ropes, you can guarantee that innovation will be absolutely intense. Welcome to the Innovation Economy.

(Editor’s note: This article was inspired by a piece authored by Ryan and can be found here)

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The 2.3 Trillion Dollar Mentor Market

By Admin

On June 29, 2009

In General Information

Mentors provide expertise to less experienced individuals to help them advance their careers, enhance their education, and build their networks. In many different arenas people have benefited from being part of a mentoring relationship: Freddie Laker mentored Richard Branson, Bach mentored Mozart, Dr. Dre mentored Eminem, Aristotle mentored Alexander the Great, and Obi-wan Kenobi mentored Anakin Skywalker.

Mentorship: a Valuable 2-way Conversation

Suppose that mentorship could be monetized like financial instruments. Within the structure of an innovation economy specified by The Ingenesist Project; a knowledge inventory, a percentile search engine, and an innovation bank will match the most worthy student to the most worthy mentor in the respective market structure. The mentor would take an equity position in the protégé, not unlike taking a stock in a corporation.

For example: A single mid-career mentor could take on 10 protégés with an option to exercise, say, 1% of the students future salary for every year mentoring upon predetermined retirement date. Say that the average mentorship lasts 10 years. Likewise, each of the protégés also becomes a mentor taking on 10 protégés of their own. The Master mentor will collect 1% of the revenue that each of the 100 sub-protégés provide to their middle mentors per year.

The Educational Pyramid Scheme

If each protégé becomes at least as successful on average as the mentor, the master mentor can collect the equivalent of their average salary for the duration of their retirement. If each of the protégés become equally effective mentors, then the master mentor can double their average salary for the duration of their retirement. A third tier adds another salary to the master mentor.

This is what actually happens in an informal way within companies, government, and Jedi Knighthood; the exception is that social media will enable this to occur outside the construct of a corporation – and such.

Game Theory for the Rest of Us

An interesting social game emerges: It becomes the best interest of the mentor that each of their protégés is successful in their field and practice high integrity. It is in the best interest of the mentee to learn as much as they can and become as proficient as they can. It is the best interest for mentees to pick appropriate mentors and it is in the best interest for mentors to take on appropriate mentees. It is efficient for mentees to form a social network among themselves and for Master Mentors to form a network among themselves. A multiplier effect surges with cross-mentoring.

In aggregate, it is in the best interest for the membership in the social network to cooperate rather than compete because their income would ultimately benefit less from competition than from cooperation.

2.3 Trillion Dollars Market

The American Public education system is in disarray. Standardized education defies the diversity of the country. Teacher’s pay has been stagnant. Curriculum takes years to respond to new knowledge. Recent McKinsey research finds that a persistent gap in academic achievement between children in the United States and their counterparts in other countries deprived the US economy of as much as $2.3 trillion in economic output in 2008

None of this has anything to do with the dreams of our children. None of this has anything to do with the intellect, motivation, and perseverance of our kids. It has everything to do with Political stalemate and failure of the economic system. All children can achieve their dreams, and ours, if there were a market for mentors.

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