[From Peter Small (2004.03.04)]
[From Fred Nickols (2004.03.03.1005 EST)] -
It occurred to me that the Johari Window might be a useful framework
for thinking about reference conditions. The Johari Window is
essentially a 2x2 matrix in which the four cells represent matters
known and unknown to self and others.Known to Self and to Others = Public
Known to Self but not Others = Private
Known to Others but not Self = Blind
Unknown to Others and Self = Hidden
Having followed up on Fred's suggestion, I checked out Johari Windows
on this site:
http://www.noogenesis.com/game_theory/johari/johari_window.html
And, like Bill Williams, I see this as possibly a useful framework
for discussion. This would take a lot of animosity out of discussions
because we can talk about each others "blind" window panes, rather
than attacking their knowledge in a general way.
Let me start with Bill Williams, who wondered "What do others know
about me that I don't know?"
The first thing I'd point out in Bill's 'blind" window pane would be
his self-confessed unfamiliarity with "Complexity theory". This is a
fine example of the blind men and the elephant. It is inconceivable
to me that anyone can claim to understand economics without having an
appreciation of the wider picture - which can only be understood
completely in terms of complexity theory.
To disdainfully dismiss it as irrelevant is the height of folly.
Secondly, I would point to Bill's insistence, that profit has a value
of zero in a transaction. This seems to expose a serious flaw in his
thinking - unless he is using it as a deliberate red herring.
I think Bill must be confused by the fact that, in a transaction,
both sides must view the transaction as beneficial. A twisted logic
might argue that, as neither side lose anything, neither could be
gaining (i.e., nobody making a profit).
But, a familiarity with Game Theory sees transactions in terms of
zero sum and non-zero sum games. In zero sum games, one side can only
profit if the other side loses (gains and losses add up to zero - as
in most gambling games). However, practically all transactions come
under the category of non-zero sum games, where both parties gain
from the transaction. To suggest that neither side can gain (make a
profit) out of non zero sum transactions is clearly ludicrous.
It is only extreme, left wing circles that sees business activity in
terms of zero sum games - where it is common to think that an
employer's profit must be at the expense of the employees.
A few years ago I wrote a dialogue to explain how non zero games
allow both side to benefit:
···
----
What are you thinking about?
I am not thinking.
I am reprogramming my brain.
Reprogramming your brain?
Yes I have just learned that money can be equated with energy.
Why do you need to reprogram your brain?
Because all my previous associations with money had not registered
that connection.
Without the connection between money and energy my thinking will be
sloppy when I am making financial judgements.
How do you reprogram your brain to equate money with energy?
Well you have to rethink everything you have learned about money and
substitute energy for money or value.
Give me an example.
Okay this is the way my reprogramming thinking goes.
In a commercial situation most of the people involved appear to be
gaining energy that is money or value.
Successful businesses make money and that is energy... so business
can be considered as a game to win energy.
If the game is a "non zero sum" type game a game where everybody can
win there must be energy being introduced into the system somehow.
Energy being put into the system?
Yes if all the players are winning energy it has to come from somewhere.
Where from?
Oil is being pumped out of the ground at an energy cost far less
than the energy in the oil.
This will introduce energy into the system.
Similarly with gas coal hydro and nuclear power.
This is one of the reasons why economic activity can be a "non zero
sum" game with more winners than losers.
Wait a minute.
This does not fully explain money making.
People were making money long before these energy sources came into being.
And money can be made when a prime energy source is not involved: the
service industries for example.
You are quite right.
Introducing energy into a system is not the only way to create "non
zero sum" games.
People can also benefit from most commercial situations through
energy being saved.
Most business profits arise through the sharing of energy which has
been gained through doing or making things more efficiently.
I don't quite understand?
I'll give you an example
Is it necessary for you to go to farms all over the country to get your food?
No. I get my food from the stores.
This must mean that your local grocery store together with other
middlemen collect all the food for you, arranging for everything you
need to be brought to one single convenient place for you to collect.
This saves you a lot of time and a lot of money.
And, not only do they do this for you but they also do it for
everyone else in the area.
I see, because they do everything in bulk they can do it more efficiently?
That's right If you can imagine all the energy saved by you and all
the other shoppers not having to traipse about all over the country
to get your food you can see that the energy saving is enormous - far
larger than the energy required by the store keeper and the middlemen
to organize everything.
And the Profit?
You and the other shoppers do not mind giving up a little of your
saved energy to pay for this benefit so the store keeper and the
middlemen can cover their costs and make a profit.
Now can you see how everyone can benefit from saved energy?
I must admit that it is an interesting way to look at things.
The value to me is that it gives me a way of looking at how to make money.
Money does not have to be made through taking it away from somebody
else as in "zero sum" games.
Money making does not have to be a cut and thrust game between
antagonists who try to take from each other.
It is a "non zero sum" game where everybody can win and nobody need lose.
The way to play the game of making money is not about taking other
people's money it is a game of trying to be more efficient - and
profiting by saving energy for people.
The emphasis is not on beating other people, but benefiting and
helping them satisfying their needs.
So, making a profit need not be a battle of wits. It can be a thinking game.
Peter Small
Author of: Lingo Sorcery, Magical A-Life
Avatars, The Entrepreneurial Web, The
Ultimate Game of Strategy and Web
Presence
http://www.stigmergicsystems.com
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