Tag Archives: Applied Mathematics

Chapter XX: The Power of Incentives

Incentive, by its meaning, suggests strongly about Game Theory. Psychological mindtricking is also one of the important facets. “What would be the opponent’s next manoeuver?” “How should I counter this tactical scheme?” “What is the best way to defend against this unforeseen invasion?” Those three sentences describe well the psychology of Chess, Xiang Qi, Go, and any other strategy turn-based game. It is rather amusing to observe the proportion of games won with this simple strategy.

Militarily, commercially, this simple game plan led many illustrious successes.  This stratagem refers to many principles of the Art of War by Sun-Tzu.

With its implication to Rationality, cognition would be altered or in other words “mind-washed” if the was not successfully able to defend from potential adversaries, if not expelled properly.  The probability the Individual would make the right choice would depend on his Cognition and Judgement.

Fear is one of the amplifying factors of Incentive-based traps. An Individual’s frightening will led him to the said Fate.  It has, intrinsically, a gambling-like effect. (This topic will be discussed in depth in the next chapters.)

The tools for Incentives are diverse. One could use the power of mathematics to calculate the time frame, the right timing to execute one’s action. Equally the use of Language, with respect to semantics and syntax, would enhance the mentioned effect by a certain coefficient.




Pre-work Considerations

  1. Goals
  2. a) Predict individual behaviour by using cognitive analysis.
  3. b) Understanding key factors in human relations
  4. c) Create a universal, numerical-scale based measuring system
  5. d) Improve analysis methods by focusing on structure and patterns
  6. e) Create a systematic solution to categorize abstract concepts
  7. f) Understanding the decision-making process (optimal choice selection)
  8. g) Create a method of quantifying emotion by measuring it


  1. Methods
  2. a) From a sample, generate theories that applies to a whole population.
  3. b) Using economic concepts to
  4. c) Simplify to clarify
  5. d) Detailed Explanation of Concepts
  6. e) Content Analysis of Games


Core concept: Equilibrium

List of Ideas

Strategy, Resource allocation, Opportunity cost, Decision making, Time/Timing (perfect moment/opportunity), Space/Distance, Estimation, Prediction, Aesthetic, Belief, Imagination, Energy (physical, mental)


– To reduce the margin of error, alpha

– To reduce confusion (incomprehensiveness, misunderstanding of human behaviour through cognitive analysis.

– Of the fundamental application of our theorem is to enhance the positive effects of cognitive behavioural therapy