A blog which periodically revisits evergreen investment principles!

Tag: Game Theory

Games We Play

A few months ago I read a very nice post by @Alex_Danco on why VC’s should play bridge. It’s worth reading & it inspired me to write from my own experience of learning this interesting card game along with my friends, during the lockdown.

For any investor it is impossible to ignore these steps, the data, the analysis, the partnership, the expectation, the execution & finally luck

In my view, the game of bridge is so well designed, that we get to see all these things play out in every single gameplay.

Do companies get the shareholders they deserve?

Traditional Textbook Economics has the point of view of maximising utility. It means that each individual’s action in the economy is based on the expectation that they will make the maximum possible gain from a transaction. Whereas, behavioural economics has taught us, painfully, that we may not always be doing this well. We may set out with the best intentions of maximum gain but many times our actions fall short of the goal.

It is not the final action, but the motivation underlying the action, that decides what is or is not viewed as cooperative or fair behaviour.
– Games Indians Play by V Raghunathan

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