Game Theory

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Economist calls it game theory but the psychologists call it the theory of social situations. This is because most research in game theory focuses on how groups of people interact. In this report we will discuss about noncooperative game theory which deals with how intelligent individuals interact with one another to achieve their goals. Nash, the real life man behind Russell Crowe’s character in β€˜A Beautiful Mind’ provided the math which made it work and won a Nobel prize for it.

The other interesting branches that are closely connected to game theory are decision theory, general equilibrium theory and mechanism design theory.

Decision theory widely used in the decision analysis to maximize expected value. For the economist, this value often depends on money income. Bayes law and Probability theory is heavily used represent the uncertainty outcomes.

General Equilibrium theory usually used in areas like: analysis of economic policies such as tax policy, finance to analyze stock markets, interest and exchange rates and other prices analysis.

Mechanism design theory asks about the consequences of different types of rules. The questions addressed by mechanism design theory include the design of compensation and wage agreements that effectively spread risk while maintaining incentives.

A very famous example of Game Theory is the Prisoner’s Game. Two persons are partners in a crime who have been captured by the police. Each suspect is placed in a separate cell, and offered the opportunity to confess to the crime. This table represented the payoffs:

Not Confess


Not Confess






If the two of the suspect not confesses they free (both have 5). If one prisoner confesses and the other does not, the confesses person will testifies against the other in exchange for going free (10), the prisoner who did not confess goes to prison (-4). If both suspect confess they will be given a reduced term of conviction (1).

The decision of confess or not confess can be labeled by “contribute to the common good” or “behave selfishly”. Everyone knows that building the bridge will give benefit to everyone but best for each individual if someone else builds the bridge. In the game that we played in the class room this can be labeled as “lowering the price” or “stay with consensus price”.

Once a doubt enters any one mind, it will rises a fear that take action “hit before hitting first”.

In the corporate world, the business organization that having this doubt for a consensus will likely to live in a state “war of all against all”.

Hobbes’s proposed solution to this problem: Tyranny. The corporate should ask a more powerful agent (government or business association) to punish any company that breaks any promise. If all people know that the cost of breaking promises exceeds the cost of keeping them they will be forced to obey the rules.

(Small report for Information System Organization – Lesson 04)


It must have been love

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14 years old and really have a great voice.

She gives this song a new soul.

Wisdom is coming…

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Wisdom is coming from finding.

But wisdom is coming way more faster from practising.

Wisdom will run toward you as long as you develop enough practice that makes you a person who attractive enough to wisdom.

That’s what the tree says to me in this morning bike session πŸ™‚

Accepting Responsibility: An Action Oriented Approach to Remove Negative Feelings

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Β β€œThe individual who wants to reach the top in business must appreciate the might and force of habit. He must be quick to break those habits that can break him-and hasten to adopt those practices that will become the habits that help him achieve the success he desires.”


All leaders have willingness to discipline themselves to accept personal responsibility. I believe each of us is a leader even to our own body, mind, and emotion. Accepting personal responsibility in your life is essential to success, health, happiness and personal leadership. It’s the hardest discipline to practice but no success is possible without it.

Lots of people attempt to avoid accept responsibility for things in life that make them unhappy. They project it to other people, government, institution, organization and this thing will weaken their character, it will distort cause and effect and in the end it will lead to endless excuses.

You must keep in mind that nothing else is going to change if you don’t change. No one will do it for you. You are responsible for your life and everything that happened to you. Don’t blame your difficult childhood or mistake that you have done in the past because the future is the product of now. Keep in mind that it’s your life and if you don’t do something to change it, it will go on like this.

Accept responsibility for doing your job better than doing only the minimum that is necessary to avoid getting fired. Accept responsibility for your finances, health and also your future.

You can go to local bookstore and read anything you need. Fill your mind with lessons, ideas or information that can help you. Dedicate yourself on continuous learning and self-improvement in every way possible.

Responsibility and Emotions

80percent of the population never accept complete responsibility for their lives. That’s why our society is full of excuses, complain, and criticize. People blaming others because of unhappiness in their lives. This is a destructive mind because it sabotage all hopes and happiness that later can come in their life.

But one of the great discovery is all negative emotions especially anger depend their existence on your ability to blame someone or something else for something in life that you are not happy about.

It takes tremendous self-discipline for you to accept complete responsibility for everything you are, everything you become and everything that happens to you. Even if you’re not directly responsible for something that happens, like Tsunami, you are always responsible for your responses, for what you do and say from that moment forward.

People who develop the habit of blaming often become angry at things. It’s a way to blame objects when they do not perform as expected or work perfectly. People often kick a car that they are mad at or tools they are using.

The most effective and fastest way to get rid of negative emotions is to say “I’m responsible”. Does this whenever you feel angry or whatever negative reaction of any kind.

Our mind can hold only one thought at a time, when you deliberately choose the positive thought “I’m responsible” you cancel out any other thought or emotion at that moment.

In Alcoholic Anonymous, people who are having problems with drinking attend meetings with others who on the same situation. They found out that no individual will have progress if they’re not accepting responsibility of their drinking problem.

It also applied in the area of financial. Once you say that you’re responsible for your financial life you are in the driver’s seat. It’s only when you accept responsibility for your income (who chose to accept the job?), your bills (who spent the money that put you in debt problem?), investment (who made the decisions?).

Relationship between Personal Control and Emotions

There’s a direct relationship between the amounts of personal control you have over your life with the acceptance of responsibility. The amount of control you have also leaded to the amount of positive feelings you experienced.

You will feel strong, powerful and purposeful when you accept responsibility. Negative emotions rob your happiness and contentment but you can take it back with accepting responsibilities.

From now on every time you feel negative emotion say “I’m Responsible” then look into situation to find the reason why you are responsible for what is going on or what happened.

It’s your choice to use your mind whether you going to use it to blame other people for the things you are not happy about, or to find reasons why you are responsible then taking action to solve it. You can make progress or make excuses. Your mind is like a double edged sword.

Even if your car is being damaged in the parking lot while you are at the office. It’s not your fault it’s happen, but you are responsible for your response. You can search another area of parking, or take a bus, or find another way to resolve it.

Action to take responsibility of your emotions

Complete responsibility for the situation is a mark of the leader and all great person. You take responsibility for your life by resolving that you will not become upset and angry about something you cannot affect or change (example: weather). If some experiences in the past make you angry and unhappy you can say to yourself “What cannot be cured must be endured” then let it go and begin thinking about your goals and your potential future. Just like Helen Keller said “When you turn toward the sunshine, the shadows fall behind you”.

Let’s practice with taking responsibility for your emotions. The way to do this is by accepting 100 percent responsibility for yourself and your responses to everything that happens to you. Take responsibility on whatever feelings you may have. Don’t slip on the temptation of making excuses, complain, criticize or blame other people or anything else. Say “I’m Responsible” and then take action of something.

Begin to accept responsibility and then take action in the direction of your goal is real antidote for anger and unhappiness. Start today to have a resolution that you are always in control of your feeling, thought and actions. Get busy to work on your goal so that you don’t have time to think about or express negative emotions to anyone for any reason.

I’ll see you at the top.

Contribute and Celebration for today

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Wow, I write more than 1500 words today.

Hopefully that words can contribute for someone who read it.

At the moment I just want to celebrate my achievement how small it is…hurrraaaayyy πŸ˜€

and for my gratitude thing for today, I just want to be thankful for this:

Thank you God for giving me the thing that I longing for 29th years… I feel abundant for your giving πŸ™‚

2 Principles for Achieving Success

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Do you ever wonder why some people achieve more in their areas of live compared with others? For centuries this question has occupied the mind of the best thinker who ever lived. Aristotle once said that the ultimate aim of human life is to be happy. The question that each of us must answer is “How shall we live in order to be happy?”

This question and your answer will determine whether you will achieve your happiness or not, and also how soon you will achieve it.

Another question is “What is your ideal life?” this can be break down into 4 major categories: Work or Business, Health, Family Life, Financial Situation. What is your ideal condition that you have in those 4 parts of your life? Can you describe yourself?

In Brian Tracy’s book titled “No Excuses!”, he put one popular definition of success which is “Being able to live your life in your own way, doing only those things that you want to do, with the people who you choose, in the situations you desire”

If you can describe your “Ideal Life” then you can notice things that you should be doing more or less in order to begin creating your ideal life. Later on you will see two biggest hindrance on achieving your ideal life: Lack of self discipline and excuses.

You already know the things that you have to do, but somehow you don’t have the discipline to practice it.

In Geoffre Colvin’s book “Talent Is Overrated”, most people learn their job in the first year of employment and then they stop studying. They already know what they have to do but they’re not doing it. But the best people in every field is not the smartest, they have commitment to continuous improvement. Commitment and discipline is what makes the top 1 percent of people in America control as much as 33 percent of all the financial assets.

Are you willing to work harder? Because everyone starting with something. The 1st generation of wealthy people even starts with nothing. Thomas Stanley and William Danko interviewed more than 500 millionaires in “The Millionaire Next Door” book then found a repetition sentence from them that telling “I didn’t have a better education or more intelligence, but I was willing to work harder than anyone else”. Hard work requires self-discipline.

Study for success will tell that if you do what other successful people do, over and over again, you will be enjoying their success too. Because you reap what you sow. No farmer can have a crop if they not plant the seed. The seed for success is to begin doing more of things that will lead you to success and in the same time stop doing activities that lead to nowhere. Ask yourself when you want to do something: Is this thing will make me achieve what I want? But first, like I said previously you have to define what is your ideal life so that you able to answer the latest question.

You have to work consciously and continuously to do things that will lead you to success. If not you will end up doing those easy, fun things that will lead to frustration, financial worries and failures for the long term.

Success has its own price. Lots of people are willing to pay the part of the price, not the whole price. They are always holding back with excuses for not disciplining themselves.

Success has to be paid in full price and in advance. It’s more like cafeteria than a restaurant. In Cafeteria you have to pay first then eat. Discipline and willingness to pay in full price and in advance will deliver you to your ideal life that you want to achieve.

The second most important thing after self-discipline is learning from the experts. Approach them to see how they done their jobs. Read their books and study their work. If you continually listens ideas and advice from the expert in your field you will become an expert too faster. The more knowledge and the bigger skills you have will increase your income earning ability. Skillful people must have a greater amount of money on their bank account. Off course they have to have the skill to manage money too. The outer world is the mirror of the inner world.

Learning from the experts and doing self-discipline is like achieving physical fitness. It’s like bathing, brushing and even eating. You do it continuously every day. Never stop until life is over.

Just like an athlete, he have to exercise continuously if not he would not be able to keep his world record.

Success with self-discipline and continuous learning will give you a big reward. The biggest prize for success is not the amount of money nor the reputation but the character. You will become a stronger and better person. This is a prize that can’t be taken away from you no matter what happen. That’s why you hear stories about millionaires who went bankrupt, then come back in his financial level just in short time.

Exams week is over…Yay!

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Syukurlah, akhirnya ujian selesai juga. Sebelum ujian sempet khawatir apakah bisa ngelewatin dengan baik apa engga. Well, walaupun belum tahu hasilnya paling engga sudah bisa melewatinya hidup-hidup πŸ™‚

Tadinya setelah ujian mau ke Praha, tapi terus di cancel karena dua alasan:

1. Im not study hard enough for the exam. Yes, Prague Visit was supposed to be my prize for accomplising all my exam preparation schedule. But I think I just finishing 60% of my schedule. So I guess it would be not honest for me to have the prize without doing the work that I suppose to do :p

2. I downloaded many interesting video. I found a great video of Anthony Robbin, Brendon Burchard and also John James Robinson.Β  Especially for John ebook and video that I’ve been looking around. I can’t wait to see and apply the techniques in it πŸ™‚

I’ll do my best to fulfill this Christmas Holiday with a good schedule and personal development stuff. Oops, remind me of 4 assignments that I have to hand in in 9 January. Let see: Business Intelligence, Relational Database, Information System Organization, Application Development.

Hmm, quite enough to keep me busy around this two week holiday πŸ™‚


*special thanks to my beloved wife who always encourage me on difficult exam phase ^_^

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