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Wednesday, August 18, 2004

Game Theory in Economics

Dear friends,

Ever heard about Game Theory? It was introduced John von Neuman in 1928. It is famous theory in Economics. There are thousands of literature and PhD thesis written about this theory.

Why it should be so famous and intriguing many people? For those who study Economics, you must have heard about this idea, mostly used in Economics and social studies to justify human behavior in marketing etc.

Moreover, it deals with nature of human being to have highest possible benefit from what he or she did. This theory is also called Prisoner's Dilemma. You can understand better by going to this URL http://www.princeton.edu/~mdaniels/PD/PD.html

Now, let's talk more on it base on our daily life example.

It is always a debate among people of different belief and background: does the hereafter exist? Why should I belief in next world?

Let's apply Game Theory. We would like to consider either paradise and hellfire is worth to belief or not.

For Muslim: we believe in the hereafter, the most we suffer is 60 or 70 or may be 100 years of life in this world (because you can't do whatever you'd like as others)

For atheist or those with no religion: you believe in no hereafter, you will enjoy your life the most 100 years. After your death, you will go nowhere.

With premise of the existence of the hereafter, Muslim belives those atheists will be in the hellfire without any 'concession'. At the same time, Muslims or those who believe in the hereafter will gain little enjoyment in this world.

Since there should be the answer of yes or no for this argument (the existence of next world), we would cancel the box for both possibility are right or both wrong. Please refer to your Economics book if you forgot how to play with this theory :)

Now, let's take the ratio of suffer over enjoy (S/E) for both group.

For Muslim,we will have the most suffer is 100 years and since we believe in the herafter, we will enjoy the next world eternally (infinity). So 100/infinity = 0.

For atheist, you will suffer infinitely in the hereafter and enjoy the most 100 years in this world. So infinity/100 = infinity.

Thus. Is it worth to believe in no hereafter and we gain infinitely suffer in ratio to our enjoyful moment since calculated S/E above is infinity? .....Think!

1 comment:

Anonymous said...

Hi,
Googled for 100/infinity=0, since I have been pondering it in a different context and found this. Interesting reasoning, but you do it completely from a muslims perspective, that there is a hell to be thrown in and a heaven to arise to. For an aitheist as my self it would be more like, 100 years of suffering in waiting for something that never comes (though all muslims can't see their lives as suffering can they?) versus a life of either suffering or joy depending on the person with an expected end. For me it is not a question of choice, it is no more possible for me to start believe in the koran or the bible than in fairy tales. I do not mean that as an insult in anyway, it is just about upbringing, if throughout your uppbringing you have been thought that everything follow logic and the natural laws and there is no magic, it is extremely difficult to make yourself change that view. I would certainly like to live forever, death is the loss of all, but wanting is not believing.