Okay, so welcome back to game theory and um as I discussed last class, our goal is able to is to use game theory to analyze global events to understand why they're happening as well as make certain predictions about how they should develop. But to do that, I first need to train your mind and how to and how to see the world using game theory. So last class in our first class we discussed example of the dating game of why men and women are motivated to behave the the way they do when they look for a mate. Today I want I want to discuss the issue of school. Okay, school.
So uh for the first few classes I'm going to use examples from your life that you know pretty well in order to develop the mindset for the game theory. So uh school is something that you should know very very well. As you know the purpose of school is to train you in a way that allows you to be functional in society as well as to be creative. Right? Okay.
So the goals are basically literacy. All right. which means reading and writing. This is the primary purpose of school because in order to function in our society, you need to be able to absorb information and convey information. Okay.
Number two is basically uh what we call the core competent core competencies. Okay, these are skills that you need to be successful in life including the ability ability to think critically to cooperate with others to coll to collaborate to communicate. Okay, you you you all know this. The last thing is what we call lifelong learning. So in an age of AI, in age of globalization, school is just a start of the learning process because every 5 years the world changes.
So you need to be in a constant process, a constant state of learning. Okay? So you have to like actually love learning and you have to like know how to learn for yourself. So these these are the three basic purposes of school. and that's why you're at the school.
Unfortunately, what we know is that most schools, I'm not saying all schools, I'm saying that most schools are pretty bad at these three things. In fact, you can make the argument that most schools not only do not teach you these skills, but they have the opposite effect. In fact, they make you hate learning. Okay, so let's look at literacy. Today in most schools you're not required to read books.
In fact when you go to university the professors there are so shocked that you don't read books that instead they make you read paragraphs or watch videos. Okay. So in terms of literacy around the world people are losing the capacity to read and to write. And not only that, but people's attention spans have decreased. It's very hard for a professor to give you an hour lecture.
People lose focus after about 5 minutes. Okay? So this is one problem. Another problem is school is supposed to teach you creativity, critical thinking skills, collaboration, but it doesn't do that. Look at collaboration.
In school, it's a competition where you believe that it's a zero- sum game. So, for you to get ahead, you need to screw over your classmate. So, class ranking is very important. So, that's kind of odd. Okay.
And the last thing, of course, is lifelong learning where school teaches you to hate school and therefore teaches you how to hate learning, especially in China. Okay? Especially in China where you work hard until the national entrance examination at age 18. And then after the exam examination ends, what do you do? You burn your books.
That's the great ceremony here in China. Right after the examination, you take your books, you rip out the pages, and you throw it in the sky to to signal your liberation, your liberation. And you're like, I never ever want to read a book again. I never ever want to take a test again. I never want to learn again.
Okay. So around the world, most schools, not all schools, there are there are some really good schools out there, but most schools are failing in their mission. School sucks. And so the question for us today is why is this the case? And so we're going to use game theory to analyze why this is the case.
All right. [snorts] So what I'm going to do now is I'm going to tell you a story about myself. So the year is 2008. I went to Yale College, okay, in the United States and I was English major. I did very well in school.
So I was hired in 2008 to go to Shinjzhin in South China and help the school Shin Middle School build a national program to send kids abroad. Okay. Right. So this 2008 which was a long time ago and back then not not that many students wanted to go abroad. There were really few international schools.
So the first thing I did was I looked at the situation at the school. Okay. And this and this this this what I found. Okay. I found that students even though they were going abroad maybe about 10% of the students were planning to go abroad.
So so that's about 80 students uh each year. That's a lot. [snorts] But the way they were going about the process of studying abroad was problematic. Okay. So first of all, all they were doing was taking regular Chinese classes [snorts] and you know in Chinese classes all you do is you sit in a room of 50 kids and you take notes and you take tests, you don't communicate, you don't ask questions, you don't debate.
Okay, so that's one problem. Another problem is that the students were spending all their time memorizing SAT word list. Okay, they were not reading, they were not writing, they were just memorizing words. And the other thing that they did to make their applications look good is model United Nations. Okay, and that's fine.
Maybe some of you are modeling United Nations and that's a great activity but everyone was doing it. There was absolutely no differentiation. All right. So I looked at the situation. I said no I mean you might be able to get into a good American university because you know these kids are very smart but I wanted to them do well at the university and to do well in life.
Okay. So I made certain changes to the curriculum and to the school. Okay. So first thing I did was I set up a seminar system. So rather than in Chinese classes, I invited these American teachers to come and teach seminars like we have at the school where 10 20 kids are in a room and they discuss books that they read together.
Okay. Um rather than SAT word memorization, I had them read books. Students were required to read a lot of books. In fact, I established a 5,000 book English library at the school where students can just go and borrow books and read. I wanted to teach students the joy of reading.
Um, and then in terms of activities, I didn't want students to do M United Nations anymore because I didn't want kids sitting around just talking. I wanted to let them do things. Okay. So, I set up two new new activities. The first is called the coffee house.
And the coffee house is is the first coffee house in China in a Chinese high school. There are lots of coffee houses today, but I was the first person to set up a coffee house where students had to run a business. They had to work as waiters and provide good service to customers. And it was it was a collaboration effort. As you can imagine, this is great for the students to learn collaboration, to learn finance, to learn entrepreneurship.
Okay. So, that was a very successful activity. Uh, do you have a question? Yeah. Okay.
I mean, was that like similar with our moon coffee like the coffee in the west south store? Okay. Um, 2008 I was the first person to do anything. Okay. Oh, okay.
Okay. Just I mean like like similar. Yeah. [clears throat] All right. So the coffee house was an activity I set up which was very successful.
It's still there today guys. If you go to middle school you will see the coffee house still there a long long time after I I went away. The other thing I did was something called the daily newspaper. [snorts] And this was the first daily newspaper in China in a high school and probably maybe even around the world where students every day had to report, collect information, write articles, edit and publish it and they worked until like midnight. sometimes until 2 am and then at 7 am they had to get up and um deliver the newspaper to all the students and these were two very successful activities [snorts] and um so I understand game theoriz says okay if you want to make this transition from the old system to new system you also have to establish a new culture to allow these activities to flourish okay and so my three major principles for um transparency, um innovation, okay, transparency, um innovation, openness.
[snorts] And so my idea was this. Rather than sub a curriculum that was perfect, it would be a curriculum that would evolve over time. We would learn mistakes together. We would admit these mistakes and then we would correct them together and that's what learning is. Okay.
Okay. So the idea of transparency [snorts] also I made changes all the time which created some chaos but it's a time for us to reflect and to be resilient. And I was very open and honest about everything that I was doing. And this in and so this system in a very short amount of time even though it there were a lot of problems in the beginning it became a very effective system after a semester or a year. And not only that the students who went for this program did very well in life.
They went to Yale. They went to they went to Wharton Cornell and this program actually school became the most famous program in South China and when our students have the best record of college admissions in South China. Okay. So this sounds great, right? Okay.
The problem is this. The problem is what happened after I established the program. The first one that happened was, okay, I was fired. They said, "Get out of here." Okay. Second of all, the teachers, the parents, the students were all happy to see me go.
They were like, "Get out of here. We never want to see you again." The third thing that happened was I did come to a new program that was very similar to this. Okay. But after that, after four years of doing this and being very successful at this, I was never allowed to set up another program again. No one wanted me to work in management again.
Okay? So even though I was successful, even though I worked really hard, even though I was innovative, even though I set up really the best study abroad program in all of China, I was the first. Everyone else copied me afterwards. I was fired. No one wanted me to stay and I was not allowed to do this ever again.
Why? Okay. Well, the reason is this. When I was doing this, the word that everyone used to describe me was not reformer, not visionary, not idealist, not dreamer, but dictator. Okay.
One other word that they used that was that was more common was this guy's an Okay, this guy's a complete Why? Because I insisted on fairness. Okay, I don't care who you are. I don't care who your parents are. I want you to work hard and learn.
And as you can imagine, that pissed off a lot of powerful people because that's not how the game is played in China. Okay? It's actually not the game how this game is played anywhere in the world. The game is not fair. The game is established by stakeholders and they play the game according to their interest.
Okay. So, um let's go over what happened. All right. [snorts] Okay. So Mike, I understand that there are stakeholders and the stakeholders in game theory are just the players.
Okay, the players. And who are [snorts] the players? Well, you have the students, you have the parents, you have the um teachers, you have [snorts] the administrators, okay, the school leaders, you have the government, okay, and then you have the colleges, okay? The college are the US colleges where I'm trying to send my students. Okay?
So these are the players in the game. And if you want to understand game theory, you need you need to understand the motivations and interests of all the different players that tells you why or how they will behave the way they do. Okay. So look, so here is my original understanding of the players which was clearly wrong. Okay.
Because I got fired. All right. So the students the students wanted like love to learn get into Ivy League and be the best. Okay. So I thought the students what their motivation was to be the best possible person to work hard to love learning to be famous to get an Ivy League.
Okay. Clearly this is wrong. Okay. I'm saying back then what my thinking was the parents well the parents wanted successful kids who were independent okay independent and they wanted phase right so they want their kids to get into the Ivy League right teachers well teachers wanted to do a good job Right? They want to teach students.
They love teaching. They love students. They just want to be given the space and the opportunity to teach what their passion is. Okay. Administrators.
Administrators. I really didn't like administrators. So, I just thought they were just they wanted good results. Okay. That's all.
Good results. As long as prov as long as I provide good results, they're happy. Okay. the government, they wanted innovation, they wanted good workers. Um, they wanted, you know, they want technology, okay?
They want a strong China. Colleges wanted the best possible potential. Okay? They wanted students who will be the leaders of the future. Okay?
So 2008 when I set up the program, this was my assumptions about who the players were and what motivated them. Okay, clearly clearly I was wrong about who they were. Okay, so let's go over again. Let's now do an anal analysis of what they really really want. Okay.
And the um easy answer is that in game theory all the players what they're motivated in is by achieving the best possible results by doing the least amount of work possible. Okay, just remember that that's a principle here. Everyone wants to achieve the best results by doing the least amount of work possible. People are lazy and people are greedy. It's that simple, guys.
Okay, so students, they want to get in the Ivy League, but they didn't want to work hard to get in the Ivy League. They wanted to do as little work as possible. And if it meant they had to uh work hard to get Ivy League, they they like, I don't want to get in the Ivy League then. I'll just get into another school because who cares? Okay, the best possible result, least possible work.
Parents are like, "Yeah, I can have my kid work hard, but what's important is for me to control my kid, right? For to make to because only I know how to ensure my kid succeeds. So, I need to I don't want my kids to think critically or or be independent. I want my kids to obey me." Now, teachers are like, "Listen, this is a job, man." Okay? I have kids.
I don't want to work hard. I just want to come to school, do what I'm supposed to do, do what is minimally required me to collect my salary and then go home. I don't want to teach my passion because I don't have any passion. Okay, administrators are like, "Oh my god, what's important is for me to make sure the powerful parents are happy. I don't care about everyone else.
I don't care about poor parents. I don't care about middle- class parents. As long as the parents who are powerful are happy, I keep my I can keep my job, right? The government is like, you know what? I don't want innovation in this country.
Even though I say I want I want it because I don't want problems in life, okay? I just want things to just stay the way they are and everyone's happy. Okay? So now we understand what happened. All right.
All right. So now what I will show you is this. I will show you how a game is constructed. A game is constructed when all the different players agree on the rules and incentives of the game. All right, I was an outsider.
I was not a player. I came in to construct a game in which I felt that students would thrive and they did thrive. But that's not what they want. Okay? They wanted to have control over the game.
And if they lose control, well, they call you an they call you the outsider an Okay. All right. So, let's do this again. And objectively think about what the interests and motivations of each player are. And when their interests converge, that's the game they play.
All right? So you have students, parents, uh teachers, uh leaders, school administrators and then the colleges. Okay. Another thing that you have to do in game theory that's very important is you have to rank the power of uh power of each player. Uh you have a question.
government. Excuse me. The government. Yes. Sorry.
Uh you're you're right. I I I forgot about the government. Okay. And the government. Yeah.
Another thing that that you have to do in game theory is you have to rank the importance of the players. Okay. So, not all players are equal. So, in this game theory, even though there are students and students are the majority, students actually don't matter. Okay.
what students actually think and want don't actually matter. What matters of course are the parents because the parents pay to play in this game and parents can cause a lot of problems if they they don't get what they want. Okay? So the most important are the parents. Then you have the teachers.
Why? Because the teachers are the ones who are implementing the rules of the game. Okay? The way that teachers behave determines how this game is played. And then these two are the most important.
Okay. Then maybe you have administrators as well, but they're not as important as a parents and the teachers. The government doesn't really matter because they don't really care, right? It's one school among thousands. Who cares what the school does as long as it doesn't cause me any problems?
The colleges don't care either. You they say they want really passionate students who are curious, who are match from China. They don't care. Okay? For them, it's a business.
They just want students who are willing to pay money to get a crappy education in America. All right? So, the costs don't really matter. They'll take anyone who's willing to pay. And the Ivy League, yeah, everyone's getting Ivy League, but but who do the Ivy League want?
They want people who want to be successful in life, right? And who are these people? Not the best students. These are people from powerful families. Okay?
So, this game is rigged, right? They have all this talk about, you know, we want the best motivated students. We want PE students who are curious, we're passionate. It's all nonsense. Yeah, that's not how the game is played.
So, the cards don't really matter either. [snorts] Um, okay. So, these are the three major players. The parents, the teachers, administrators, students, government, colleges, they are in this game, they don't really matter. Okay.
So, now we're going to do is we'll analyze the mentality, the worldview, the interests of each player. Okay. And again once you do that once we figure out where they converge then we know how the game is constructed. All right [clears throat] so let's look at students. Students okay I mean they want to be popular right so most students come to school and actually their priority is not to learn.
The priority is to make friends and to be popular among their friends. Okay that that's just human nature. That's true right? [snorts] Um then you have uh please teachers and parents. Okay, this guy this is really important to understand.
You're not in school not to learn. You're in school to please parents into teachers. Why? Because parents are the ones who pay for your way in life, right? The ones who give you food.
Teachers are the one who gives you grades. You're not here to learn. You're here to please them. There's a difference. Okay?
And grades are a way of showing how well you're pleasing the parents and the teachers. Okay. Is that true? All right. Um and then you're like have fun.
Okay. And then get a good college. Okay. All right. So, am I missing any anything among my students?
All right. So, but okay. I'm sure there's more, but but let's just keep on going. Okay. Now, parents, well, the parents, what they want is, of course, successful kids.
But they want successful kids not because they believe that success will make their kid happy. What they really want, of course, is face, right? [snorts] They want their kid to go to the Ivory League and they only the kid the Ivy League provides a good education or their kid will be happy at the Ivy League. They just want to brag to their relatives and their friends and their colleagues. My kid is at Brown or Cornell or Dartmouth.
Okay. Um but face also means to treat education as a luxury product. Why do parents send kids to national schools? Not because national schools provide a better education. It's because international schools are more expensive and most importantly international schools have white faces, right?
White faces. Okay, this is the main marketing tool of international schools, right? They have all these white faces, white teachers like, "Oh my god, this is a real national school now." You don't care if the what if the teacher actually good at what they're doing. You don't care if the kids are actually learning. You don't care what the curriculum is.
You don't understand that sort of stuff. You just understand, okay, 10 white faces, therefore this is a good school. It's that simple. Okay? [snorts] And then of course you want some good outcome.
Okay? You want you want a good outcome. You don't care if your kid is actually learning in school. What you want is your kid to get good grades, to get in a good college. Okay?
These are not the same thing, right? So that's the parents. Then the teachers. Teachers are really simple because teachers do this job and for them the priority is to do as little work as possible to get by. Okay?
I'm not saying all teachers. I'm saying the majority of teachers in the school are just trying to get by because quite honestly, they have families, they have other responsibilities. So you don't have time to focus entirely in school, okay? So basically just get by, okay? Or the minimum amount of work, okay?
You may not you may not believe this, but like when you actually grow up and get a job, you'll do the same thing. Okay, just get the do a minimum amount of work in order to get by. um administrators they want good outcomes but what their real priority is to protect relationship with parents. Okay, just give parents what they want. Okay, their job is to sell the school.
So, so whatever parents want, you just give it to them. And administrators also, by the way, have families. This is a job for them. They also just want to get by, okay? They're not trying to build the best school possible.
They're not trying to change the world. They're not trying to educate students. They're just trying to get by, do the least amount of work in order to uh get by. Government is okay. They say they want innovation, creativity, technology, but really it's just like no problems, guys.
Okay? As long as you don't care any problems for us, we're happy with you. Just stay away from us. We're happy to not bother you. Please don't come bother us.
Yeah, that's government. Also, what they want is for students who will also be no problems in the future, right? Right. So, compliance. So, as long as schools are teaching you how to obey authority, how to comply, how to do what you're told, they're happy.
You're a good school. Okay? Colleges again just want the money. Okay? That's all they care about.
If you're willing to go to American College and pay how much how much is is it nowadays like 50,000 100,000 a year? That's a lot of money, guys. Okay. If you're willing to pay that, they'll take you. I guarantee you.
Even even if you don't speak English, they'll take you. All right. Uh yeah. So, you mentioned that earlier like the the the purpose of education are that three things, but now schools don't do that. So what caused the transformation?
Yeah, that's a really good question. when and also yeah okay [snorts] so what we discussed last class is the idea of superstructure right superructure sorry superructure is just the macro picture of a society it's demographics how many people are there it's economy it's politics it's religion okay and we discuss how societies are born they mature and then they die. Okay. So there's actually another way of understanding this. You can actually use three metrics to understand how societies develop.
Okay. And these three metrics are cohesion, openness and energy. Okay. So what is energy? Energy just means you want to work hard.
Okay. you are, you believe, you're motivated, you're driven, you work hard all the time. And working hard just doesn't mean like you work 12 hours. It just means like you're focused, you're attentive, right? So, for example, if you're working at a restaurant as a cook, you want to make a really good meal.
Okay? You're energetic about it. Okay? Does that make sense? That's energy.
Okay? So, um, openness just means that you want to learn, you want to grow, you're willing to admit you made a mistake and improve on yourself. Okay. And the last thing is cohesion where you are you see yourself as part of a society, part of part of a community of people and you want your community to grow as well. And when you have all three things together, the schools are great.
Okay? And so, for example, go to Finland. It's a small country, maybe about 5 million people, but the schools are amazing. Why? Because Finland is an energetic, open, and coy society.
And when you're hear that, what you want to do is invest in the future. And what that means is you want you have to make sure that every child not just your child but every child has good future has good education. And so what you do is you have your best and brightest become teachers, right? You pay them very well. You give them high status and you give them a lot of autonom.
And if you do that, the schools are great. And guess what guys? in China in maybe 1980s, the schools were amazing here. Okay, what we're seeing today is today. But if you go back to the 1980s, the schools were really good.
If you went to a school in China, I'm I'm not talking about like the best. I'm just talking about like an average school, teachers felt respected. They believed that the responsibility to train the young. They took pride and joy in their work and the students enjoyed learning. And guess what?
Back in 1980s, kids did less work. There were less tests, there was less pressure and they learn a lot more. Okay? So when a society be starts and begins, you have these three aspects. But over time, what happens is all three decline.
Why? Because there's more corruption, there's more inequality, there's more wealth. Okay? So, what happens is wealth generation and inequality, corruption, and so people feel under stress. Okay?
So, rather than cohesion, you have individualization, individual. Okay? Does that make sense? Where everyone's like, you know what? I don't care if other kids are doing well.
What's important is that my kid does well because it's a zero- sum game. If if if all the other kids in the school do really well, but my kid flunks out, I'm dead. I'm screwed. So, I rather my kid do okay and every other kid gets screwed over. Okay.
So, now it's a competition in schools. All right. Openness. Are you willing to learn from your mistakes? And the answer is no.
Because if I'm an administrator and I say to parents, "I'm sorry. I made a mistake today." The parents will be like, "You're fired. Get out of here. You're incompetent." Okay? So, you could be like the best person in the world, but if you make make a mistake, the parents will come and kill you.
But if you you but you could be the worst person in the world, but you just hide in your office. The parents can't find you. You're okay. Okay. So, school administrators are are are now afraid to admit they're wrong, which means that a school can never improve.
Right? Then you have energy which is like you know what if I do a good job parents will want me to do a better job. I can't please all the parents. So I'll just hide my office do as little work as possible and then if parents complain I'll just shut off my brain. Okay.
And this is happening because of wealth generation. 1980s China was really poor. And no only way to get to to lead a better life is through education. That's why students work hard. If students work hard, teachers are motivated to teach well.
And now you having a time when you know today in 2025 26 when parents have money. So it doesn't matter if you don't do well in school because your parents can just give you an apartment, can buy you a car. Who cares if you do well in school? So you're not motivated. If you're not motivated, indifferent, then as a teacher, why am I going to want to teach?
Well, okay. So it's a super structure of society. Okay. Does does that make sense? All right.
Any more questions? Okay. Okay. So So thank you. Okay.
So again um superructure determines the motivations of the players and where the interest of the players converge is the game that you have. Okay. All right. So you go back to this list and what we're seeing is parents just want white faces. Okay, sorry.
white faces and they want um successful kids which means good grades. Okay. Um parents teachers just want to get by and do as little work as possible. The ministry just want to protect relationship with parents. Okay.
And so when you do this convergence this this is what schools look like now. Okay. schools in China, international schools in China, by the way. And again, this is like the majority. I'm not saying it's every school, but I'm saying it's the majority.
Okay? What you have are white faces, easy grades, right? It's really easy to get a good grade. All right. Um, some top students, these students are given scholarships and then they're sent to top universities.
Okay. Then you have lots of cheating. Okay. And high turnover where students leave, teachers leave, but new ones come in. So, who cares?
Okay. And this is what it looks like. This this what happens when you take the interests of these different players, you converge them together. And this is what what schools look like today. There's lots of white faces, lots of really nice buildings, lots of fancy activities, great marketing, beautiful website, really motivate admissions officers.
Then you have easy grades where everyone gets an A no matter what you do. Um, you have some top students who will get into good school so that um the the school can brag about them. You have lots of cheating going on. Okay, if you don't get a good grade, just complain and you'll get a good grade. Okay, so that happened to me at the school where I tried my first year to give um fair grades.
Okay, and a fair grade is not like I I give you a 20. I give you like an 80 and students complain about me. So now, so I'm stuck giving them like a pass fail, right? So it's not hard for students to get to pass. If you don't like a teacher, just complain and then the teacher has to change.
And so you now you have high ch turnover where teachers feel stressed out and where parents are never happy and where students don't care. Okay? Doesn't make sense. This is why schools suck. And I'm I'm saying they suck not just in China, not just in our schools, but in most places around the world.
And it has to do with the superstructure of society. Okay. But what but I I mean like the point of today's class is not like schools suck, don't go to school. The point of today's class is we're trying to analyze why schools are the way they are. And one way to analyze it is by figuring out what at what point, okay, do the different players converge, right?
So think of you have different sets, right? Okay. Parents, teachers, [snorts] students, government, ecologist. Okay. And their convergence point is the game they play.
Okay. Now, what's important for us to understand is that there is actually a lot of room to this convergence point. So it's possible to do reform but only within a subset of of this convergence point. Okay. So my problem is back in 2008 I was like you know what I'm going to set up a new universe my own world.
I'll make up the rules. I'll be god and you just have to play the game. I tell you to play the game. Okay. That's why everyone is like you're an Okay, whatever you do, whatever game you set up has to be within this conversion point in order for players to accept it.
Okay, and this is true for everything. If you want to implement political reform anywhere, you have to figure out where the different stakeholders converge and figure out how to move the stakeholders from one part of the convergence point to another part of the conver convergence point. Okay, this slow incremental reform. Okay, does that make sense? Okay, any questions before I I conclude guys ask questions?
What what was this clear? Yeah, you have a question. So in the future will we learn more about how do we find out what causes different stakeholders to have different interests like in the future? It's like not really really okay. Yeah, that's a really good question.
So so thank you for asking. Okay. All right. So the question is where do the interest of these different players come from? Okay.
And I mean the easy answer is the super structure of society. Okay, people are responding to their culture. But in game theory, what I want to teach you is that it's because they themselves are playing different games. Okay, so let's look at parents. [snorts] Okay, parents have different identities.
They are um family, they are colleagues. Okay. And depending on on on their identity, they're playing a different game. All right. So, what does family family mean?
Family means that you um might have brothers, right? Brothers. What do brothers do? They compete against each other, right? You have three brothers.
You want to prove that you're better than your brother. How? Well, by having more money, by having better kids, by having a more beautiful wife. Okay, that's a game they're playing, right? Um, but then you have colleagues.
You have colleagues and the game you're trying to play there is get along your colleagues because that that's what ensures your success in life. Okay? So you need to make sure that your child no matter how he or she is educated is able to become friends with the sons and daughters of your colleagues. Okay? So because this is what ensures success.
All right? And so there are other games as well. But but you understand this right? You understand how parents so calculation isn't just like my kid I want my kid to be successful. No, no.
You're thinking about how to play different games and be successful in other games, right? Because if you if your kid becomes very successful but not in a way that pleases the colleagues, you become you can be thrown out of the game. Okay. The people that the thing that people fear the most is the idea of aization. Okay.
or basically just exile where you are no longer part of the group. They kick you out as a player. Okay, that's what people are afraid of and that's why people are motivated by what they do because they're trying to they're trying as hard as possible to to play the game and get along with other other players while at the same time competing against them. So so it's a weird psychology. Okay, you're trying to beat them.
At the same time, you don't want to piss them off and get thrown out of the game. Okay, and this is what prevents the idea of cheating. But from the perspective of the game, if you're doing anything different, that's still cheating. Okay? Because so another way of saying this is a lot of the rebellion against what I was doing as a reformer is I was subverting traditional Chinese values.
Okay. I was arguing against the norms, the values, the conventions of this country. And it's and so if people believed in me then they risk themselves being ostracized by the larger community. Okay, does that make sense? All right, so that's parents.
Then you have um right. Okay, but students, right? So students they're trying to play a game where they do well in school because that ensures a good outcome but at the same time students play other games as well. So for for example a friendship game right where you're trying to have as many friends as possible. You're trying to be popular in school.
That's another game you play. You're also trying to please your parents right because by pleasing your parents that ensures that you have an easy comfortable [music] life. In fact you could argue that of these three games pleasing your parents is the most important. Then comes um having good friends because [music] that will also ensure your success in life. And the and the game that you care the least about that matters the least is actually doing all in school learning learning in school.
Okay. Does does that make sense? So game theory it sounds easy but it's very very complicated because we're complicated individuals. Each one of us has different identities, has different motivations, and has different outlooks. And and also what's really important for us to understand is we're always changing as people.
Okay? So the way that you behaved in kindergarten is not the way you behave today in high school, it will not be the way you behave when you enter society. You're always changing because the game is always changing. You must adapt to new games that have different players and have new requirements. Okay.
So that's wonderful about us where we are easily adaptable where we are we are resilient okay but um we are always changing according to the game and and we are who we are is often determined by the nature of the game. Okay. So you could have come into school wanting to learn, being creative and all that, but eventually you you recognize that that's not really rewarded in school. All right? Getting along, having lots of friends, doing helping other students cheat, that's rewarded.
And so you adapt to the game and that's why you behave the way you do. Okay? And if you actually go back and think about everything that you did in school, the answer is you're responding to a certain incentive or rule of the game. Okay? And that's what you need to that's what we need to understand about game theory.
Game theory, it's not about ideas. It's not about ideals. It's not the way things should be. It's the way things are. And the way things are are determined by who players are and the way players behave um is a response to their the game they believe they're playing.
Okay, does that make sense? Okay, so so thank you. Any more questions? Okay, great. So um we will continue this next class.