Winning the Hardware Software Game Winning the Hardware-Software Game - 2nd Edition

Using Game Theory to Optimize the Pace of New Technology Adoption
  • How do you encourage speedier adoption of your product or service?
  • How do you increase the value your product or service creates for your customers?
  • How do you extract more of the value created by your product or service for yourself?

Read more...

Latest Comments

  • Anonymous said More
    This was excellent and extremely... Tuesday, 21 April 2020
  • Anonymous said More
    Well written. Well constructed. Tuesday, 13 August 2019
  • Ron Giuntini said More
    As always a good read.
    I have always... Thursday, 25 January 2018

Facebook and Google have recently being getting flack from users for hosting fake news stories. As Jack Nicas and Deepa Seethataman report, “Google and Facebook Take Aim at Fake-News Sites”

Facebook Inc. and Alphabet Inc.’s Google announced steps to prevent fake-news websites from generating revenue through their ad-selling services, signs that technology companies are moving to address a growing controversy about misinformation on the internet.

The Fake News Game is illustrated in Figure 1, and players’ objectives, actions, and tensions are described briefly below.

Figure 1

fake news game2

Advertisers

Objective: Maximize User ad clicks

Action: Choose sites, including News Sites and Platforms, to host ads

Given: Existence of both real and fake news and information

 

News Sites

Objectives:

• Generate news stories to attract Users

Maximize revenues from User clicks on hosted ads.

Actions: Generate news stories from available information to attract both Users and Platforms to both read and repost stories

Given:

• Existence of both real and fake news and information

• Costs (e.g., time) of verifying news and information for legitimacy

Tensions:

Real News SitesWant news to be

• Interesting so as to attract Users

• Real so as to maintain reputation for reporting real news

Fake News Sites: Want news to be

• Interesting so as to attract Users

• Similar to Real News so as to avoid being filtered out

 

Platforms

Objectives:

• Host news stories and information to attract Users

• Maximize revenues from User clicks on hosted ads.

Actions:

• Host news stories to attract both Users and Platforms to read and repost stories

• Design algorithms to filter out fake news and information

Given:

• Existence of both real and fake news and information

• Costs (e.g., time) of verifying news and information for legitimacy

Tensions:  Design algorithms, given

• If weed out too much news (i.e., falsely exclude real news), then lose ad revenues

• If weed out too little news (i.e., falsely include fake news), then lose/anger Users

 

Users

Objectives:

• Visit websites that provide interesting news and information

• Generate reputation for passing along (reposting) real and interesting news and information

Actions:

• Choose websites to visit

• Repost interesting news and information

Given:  

• Existence of both real and fake news and information

• Costs (e.g., time) of verifying news and information for legitimacy

Tensions: Choose news and information to repost, given

• If repost too little news and information, then lose reputation

• If repost too much fake news and information, then lose reputation

 

Observations

  • The more difficult it is to verify (and weed out) news and information for accuracy and legitimacy, the more fake news and information will appear.
  • The more fake news there is that is reported or posted, the more difficult (more costly) it is to verify the accuracy of any given piece of news and information. That is, there is a feedback loop here.
  • The lower is the penetration of fake news and information, the greater is the tendency for Users to assume news and information is generally true.
  • However, once a minimum threshold of misinformation has been achieved, Users can no longer assume that news and information is generally true. I think we’ve almost achieved this tipping point.

More Blogs

Cannabis Industry Rollouts: Lessons Learned from States’ Experiences

27-04-2020 - Hits:337 - Ruth Fisher - avatar Ruth Fisher

Bart Schaneman from MJ Business Daily recently released, “2020 Cultivation Snapshot: U.S. Wholesale Marijuana Prices & Supply.” The information contained in the report helped cement certain insights I’ve had about the evolution of the cannabis market. Background info In addition to the myriad other laws and regulations, all states essentially have two...

Read more

A Data-Generating System: A Framework for Data Assessment

14-04-2020 - Hits:308 - Ruth Fisher - avatar Ruth Fisher

Suppose I gave you, the Data Analyst, a dataset of information on sales of Ford automobiles, and suppose I told you to use that dataset to predict total national sales of Ford automobiles for next 12 months. What would you want to know about the data you were given? If you...

Read more

Hemp and CBD Market Supply

06-04-2020 - Hits:295 - Ruth Fisher - avatar Ruth Fisher

The information in this post was compiled in an attempt to understand 2 issues: Does the cultivation of hemp differ depending on the hemp product supplied (fiber, seed, or flower)? Is the CBD produced from hemp (cannabis with ≤ 0.3% THC) identical to the CBD produced from marijuana (cannabis with > 0.3%...

Read more

Trends in Cannabis Patents Over Time

08-12-2019 - Hits:1345 - Ruth Fisher - avatar Ruth Fisher

Patent Counts by Year I searched the USPTO patent database for all patents for which the patent abstract contained any of the following terms: cannabis, cannabinoid, marijuana, tetrahydrocannabinoid, or cannabinol. My search yielded 914 patents. As seen in Figure 1, there were only a handful of cannabis patents each year until the...

Read more

Why Is Alcohol Accepted While Cannabis Is Not?

24-11-2019 - Hits:1651 - Ruth Fisher - avatar Ruth Fisher

Alcohol Use In America Cannabis Use In America Prevalence and Social Attitudes What Determines an Activity’s Prevalence? Social Attitudes and Laws Social Acceptance: Alcohol vs. Cannabis Social Narratives vs. Reality The Role of Common Knowledge   Both alcohol and cannabis have been around for thousands of years, and both have been used for recreational, spiritual, and medical purposes. Both...

Read more

Social Development Requires More Than Just New Technology

14-10-2019 - Hits:873 - Ruth Fisher - avatar Ruth Fisher

This post continues the discussion about what society needs in addition to technology to develop. In my previous entry, The Growth and Development Paradox, I established that Technology enables societies to develop. Foundational technologies have existed for thousands of years. Yet, sustainable development didn’t occur until the Industrial Revolution. Technological development is thus not...

Read more

Cannabis Science and Technology Finally Got Hitched!

03-10-2019 - Hits:742 - Ruth Fisher - avatar Ruth Fisher

The Separate Worlds of Science and Technology Throughout most of human history, science and technology existed within completely separate realms of society. Science, or natural philosophy, fell within the realm of the upper ranks of society. Natural philosophers were “uncommitted to any program of useful knowledge,” developing “abstract speculations about the...

Read more

The Growth and Development Paradox

24-09-2019 - Hits:822 - Ruth Fisher - avatar Ruth Fisher

Wheat yields in the UK hovered around ½ tonne per hectare for hundreds of years (see Figure 1). Imagine being able to generate no more wheat per unit of land than your ancestors who had lived 100 generations before you had been able to grow! The introduction of crop rotation...

Read more