Winning the Hardware Software Game book Winning the Hardware-Software Game

Using Game Theory to Optimize the Pace of New Technology Adoption

Innovators of new technology systems requiring users to combine both hardware and software components often face delays in adoption of their new systems.  Users will not buy the hardware until enough software or content is available, while at the same time software providers will not provide content until enough users have adopted the new system.  This book examines the dynamics of this adoption process and provides methods for optimizing the pace of adoption of new technology systems.     Read more...

game theory

  • First Game Theory Group Meetup

    Group Introductions

    Introduction of HDTV Technology

    Definition of a Game

    Insights into Technology Games and New Technology Adoption

    How Do You Change the Environment?

    Mapping Out a Game

    How to Determine Which Choice Will Prevail

     

    October 22, 2104

     

    Group Introductions

    The 7 attendees were seated around a large table. Before the talk began, people introduced themselves and gave a short description of their background. The audience included gamers and software and systems people. Several people commented that they were interested in applying game theory to “negotiations” with co-workers, that is to figure out how to better get things done. Others were interested in applying game theory to gaming.

     

    Introduction of HDTV Technology

    I started my talk with a description of the introduction of the HDTV technology into the market in the 1990s. At that time, when digital technology was introduced, TV programs were being broadcast in analog. The government wanted the transition from analog to digital to proceed quickly, because the government planned to use the analog spectrum for emergency services and other government services.

    However, users did not actually end up adopting the new technology very quickly at all, because (i) the TVs were expensive, and (ii) there was very little programming available in digital. Before users would adopt the new technology – by purchasing the expensive HDTVs – they wanted there to be plenty of programming available to be able to watch.

  • Game Theory Basics

    What Is Game Theory?

    Game theory is a tool that’s used to “map out” particular situations and figure out what is likely to happen under various scenarios.

    In some cases game theory is employed by means of modeling situations using mathematical equations. In these cases, the equations can be used either to solve for optimal solutions and/or to generate simulations to see how the situation plays out under different scenarios.

    However, game theory can also be employed using less rigorous methods. Most situations can be mapped out visually and textually, and then one can use those mappings to better understand situations and draw conclusions.

     

    When Can Game Theory Be Used?

    Game theory can be used in situations in which an entity’s payoff (profits, well-being, etc.) is dependent upon actions taken by other entities.

    As the world has become globalized and markets have accordingly become more interconnected and complex, game theory has become increasingly applicable to more and more situations. In particular, more situations have become characterized by global ecosystems, in which many players from different countries are involved to different extents and at different levels.

  • Overview of Technology System Dynamics

    This is a presentation I’m preparing for “Tech Startup Conference: Artificial Intelligence” being held on September 26, 2017.

    1. Issues Covered

    • Adoption of New Technology Systems: What does it take for new technologies to become successfully adopted in the marketplace? Why do some technologies become adopted while others do not?
    • Value Creation: How do the components of the system combine to create value for the different players? Can the environment be changed so that the system will create more value?
    • Value Extraction: How much value does each player extract? In particular, are players extracting as much value from the system as they can?