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July 16th, 2013, 03:49 PM   #1
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Poker Theory of Economics

Poker Theory of Economics

In a game of poker, the amount of the bets is based on two factors initially. The first is the number of players at the table. The second, the number of chips. 10 people and 10 chips will result in substantially different betting than 2 people and 2,000,000 in chips.

In an economy, we are all playing poker, only we are gambling that the price we are paying for goods and services is a good bet. The same goes for providing goods and services: we bet on a the price we accept for our efforts.

Inflation starts with dividing the money supply by the population.

After that, we have to examine two more factors. The first is the distribution of the money supply (pure capitalism tends towards an elite class). The second is the goods represented by the money supply (goods = money in any system, as money itself is worthless unless attached to goods and services).

The first factor is a role of government to manage. Taxes and the redistribution of wealth is something that economists have debated thoroughly.

The second factor is something I can continue to investigate further on a basic level.

As time proceeds, the goods and services in any economy change. Some become more plentiful due advances in technology and some become more scarce. Some goods and services come into existence over time. History has dictated a powerful example for us here: The set of all goods and services continues to grow. Back in 1700, people were not worried about finding outlets for their hair dryers. As a result, the money supply did not have to address as much.

We stretch our money supply by adding goods and services to an economy. The more goods and services we add, the further our money must go, so deflation occurs (we are not willing to spend as much on any one thing, because we want more things all together).

We stretch our money supply by adding population.

To control inflation, do two things:

1) manage the distribution of wealth

2) manage the supply of money by keeping constant the ratios of dollars to population and dollars to total goods and services.*



* Question:

How to value total goods and services, given the dynamics associated with computing the set of all goods and services, and noting this total cannot be expressed in terms of dollars?

I compare goods and services to people at the table when playing in a tournament. There are 9 goods and services if 9 people must be eliminated before you, the 10th player, are victorious. Each bet brings you closer, or further, from obtaining the goods and services you desire (getting everyone else out).
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July 16th, 2013, 03:52 PM   #2
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Re: Poker Theory of Economics

PS: I think government should control the banking and insurance industries. I also agree with regulating foods, drugs, etc. I really want a safe smoke free cigarette!! I do not think the government should tell people what to do when it comes to picking their own careers and paths in life... I like having roads and water. I would not like to be told, "you must do {insert example} for a living and you should make {insert example} this much." Agree with market set prices for goods and services.

I do have ideas when it comes to banking and insurance. I think the government should step in, as the free market does not always act accordingly.
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July 16th, 2013, 07:36 PM   #3
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Re: Poker Theory of Economics

Quote:
Originally Posted by krausebj0
I compare goods and services to people at the table when playing in a tournament. There are 9 goods and services if 9 people must be eliminated before you, the 10th player, are victorious. Each bet brings you closer, or further, from obtaining the goods and services you desire (getting everyone else out).
I find the comparison misleading. At the poker table I want everyone else to lose because I can't win otherwise: the game is zero-sum. But life is not nearly zero-sum! If I do my own accounting and you do your own computer programming, we could both become better off by swapping our services (because I'm a better computer programmer than you, and you're a better accountant than me).
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July 17th, 2013, 06:14 AM   #4
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Re: Poker Theory of Economics

Like in the NBA, Steve Nash throws perfect passes to TooTallJones for the "dunk";
try it the other way and ...... disaster
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July 17th, 2013, 08:51 AM   #5
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Re: Poker Theory of Economics

Quote:
Originally Posted by CRGreathouse
Quote:
Originally Posted by krausebj0
I compare goods and services to people at the table when playing in a tournament. There are 9 goods and services if 9 people must be eliminated before you, the 10th player, are victorious. Each bet brings you closer, or further, from obtaining the goods and services you desire (getting everyone else out).
I find the comparison misleading. At the poker table I want everyone else to lose because I can't win otherwise: the game is zero-sum. But life is not nearly zero-sum! If I do my own accounting and you do your own computer programming, we could both become better off by swapping our services (because I'm a better computer programmer than you, and you're a better accountant than me).

Once somebody is out, they must go to work and earn some more chips to buy back in. You are right. Nobody dies at the table!
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July 17th, 2013, 08:53 AM   #6
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Re: Poker Theory of Economics

I have had this so-called poker theory of mine for a while. I am not experienced enough in economics to go too deep with it. This is just how I look at it.

I use set theory remember, and so the set of all goods and services to me is something that is finite at any given moment, but that is potentially an infinitely large list over all history and the future.
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July 17th, 2013, 09:15 AM   #7
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Re: Poker Theory of Economics

I cannot resist this joke. To earn some more chips, you have to supply the next round of drinks. I am not saying anybody needs to bump their heads on the bottom of the table.
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