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 Structure of presentation 1. Introduction 2. Brief review of game theory as part of systems theory 3. The Pac-Man model 4. Example of the model in practical use 5. Discussion 6. Conclusion 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) Managers Engineers Scientists 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? Structure of presentation 1. Introduction 2. Brief review of game theory as part of systems theory 3. The Pac-Man model 4. Example of the model in practical use 5. Discussion 6. Conclusion 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) Systems theory categorized by the Burrell&Morgan matrix (examples) Subjective Objective Radical change (”conflict”) Drama theory Game theory (Howard, 1971) (von Neumann, 1944) Regulation (”harmony”) SSM OR Game theory & GST strategy Chess Bridge Monopoly Pac-Man … Sports Drama Game model payoff (model of conflictual system) homomorphism Games Business Economics Politics Biology Psychology … Structure of presentation 1. Introduction 2. Brief review of game theory as part of systems theory 3. The Pac-Man model 4. Example of the model in practical use 5. Discussion 6. Conclusion Pac-Man (Iwatani, 1979) Title screen Start of game Ghost psychology & management grid (Blake & Mouton, 1964) Score board Pac-Man food Level Points Dot All 10 Document verification Dot All 10 Quality audit Dot All 10 Quality report not part of a management decision process Power pellet All 50 Quality report as part of management decision process 1st Ghost All 200 Impact on manager 2nd Ghost All 400 Also impact on a second manager 3rd Ghost All 800 Also impact on a third manager 4th Ghost All 1600 Cherry 1 100 Positive feedback Strawberry 2 300 Positive feedback 3+4 500 Positive feedback 5 700 Positive feedback Lemon Apple TQM activity Impact on four or more managers Structure of presentation 1. Introduction 2. Brief review of game theory as part of systems theory 3. The Pac-Man model 4. Example of the model in practical use 5. Discussion 6. Conclusion Insert coin: 1999 Pac-Man strategy Game over: 2005 45000 40000 35000 30000 25000 20000 15000 10000 5000 Pac-Man score 6 years 2004 2003 2002 2001 2000 0 Structure of presentation 1. Introduction 2. Brief review of game theory as part of systems theory 3. The Pac-Man model 4. Example of the model in practical use 5. Discussion 6. Conclusion Applying Pac-Man philosophy in the real world Pac-Man TQM politics Principle 1 Keep eating, and reflect in Keep auditing, measuring, analyzing and action (or between games). making improvements. Data collection, For each board level, there analysis, action and progress must never are behavioural survival stop. patterns (Zavisca & Beltowski, 1982). Principle 2 Understand ghost psychology, Expect conflict, study management both on individual level and psychology and avoid irritating people how they act as a swarm unnecessarily. (Kelly, 1994; Holland, 1995). Principle 3 Get energized and attack when Design “management review” (Hoyle, 2006) the ghosts are clustered, to fit with institutionalized quality before they manage to control practice (annual budget process, scatter in all directions. annual production cycles etc.), get as much management commitment as possible. Structure of presentation 1. Introduction 2. Brief review of game theory as part of systems theory 3. The Pac-Man model 4. Example of the model in practical use 5. Discussion 6. Conclusion 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
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