Using game theory for producing quality plans: A Pac-Man simulation experiment

1. Using game theory for producing quality plans: A Pac-Man simulation experiment Petter Øgland, Department of Informatics, University of Oslo UKSS Conference, Sep 1.-2. 2009

2. Structure of presentation • Introduction • Brief review of game theory as part of systems theory • The Pac-Man model • Example of the model in practical use • Discussion • Conclusion

3. Managers Engineers Scientists Doing OR without understanding organizational politics • To succeed with OR it is necessary with sociological understanding and political skills (Checkland, 1981; Jackson, 2000; Mingers, 2006) • Management scientists (change agents) and managers are ”natural enemies” (Beer, 1968)

4. Observations leading to a question • The theory of “serious games” (Abt, 1969) is based on the idea that games can be used as general models for understanding conflict and competition • Axelrod (2002) has written about the non-serious game of Monopoly as a model for understanding business strategy • Some researchers believe that the video game generation see the world differently than previous generations (Beck & Wade, 2006) • Could the non-serious Pac-Man video game be used as a model for understanding the politics of OR and TQM?

5. Structure of presentation • Introduction • Brief review of game theory as part of systems theory • The Pac-Man model • Example of the model in practical use • Discussion • Conclusion

6. Game theory & Systems theory • In the early years of systems theory and cybernetics, game theory is explicitly seen as a part of systems theory (Wiener, 1950; Ashby, 1954; Churchman et al, 1957; von Bertalanffy, 1968; Weinberg, 1975; Rapoport, 1986) • Metaphors about TQM as a game is common in business literature (e.g. Crosby, 1979; Berry, 1991; Cole, 1999), but strangely not so common in systems-based business literature (e.g. Flood, 1992; Jackson, 2000) • Metaphors about science as a game is common (Latour, 1979; Sinderman, 2001), but strangely not so common when writing about action research (e.g. Reason & Bradbury, 2004)

7. Systems theory categorized by the Burrell&Morgan matrix (examples)

8. Game theory & GST Game model (model of conflictual system) strategy payoff Games Business Economics Politics Biology Psychology … Chess Bridge Monopoly Pac-Man … Sports Drama homomorphism

9. Structure of presentation • Introduction • Brief review of game theory as part of systems theory • The Pac-Man model • Example of the model in practical use • Discussion • Conclusion

10. Pac-Man (Iwatani, 1979) Start of game Title screen

11. Ghost psychology & management grid (Blake & Mouton, 1964)

12. Score board

13. Structure of presentation • Introduction • Brief review of game theory as part of systems theory • The Pac-Man model • Example of the model in practical use • Discussion • Conclusion

14. Insert coin: 1999

15. Pac-Man strategy

16. Game over: 2005 6 years

17. Structure of presentation • Introduction • Brief review of game theory as part of systems theory • The Pac-Man model • Example of the model in practical use • Discussion • Conclusion

18. Applying Pac-Man philosophy in the real world

19. Structure of presentation • Introduction • Brief review of game theory as part of systems theory • The Pac-Man model • Example of the model in practical use • Discussion • Conclusion

20. Conclusion • Seeing TQM as Pac-Man produces strategies of fight and flight that can help change agents interact with management • Game theory was seen as a promising part of systems theory in the past – the study indicates the relevance of future exporation on the ”soft” aspects of GT