Element 1: Availability of information
Element 2: Skill
Element 3: Luck
Game of Chess:
Information is available -Yes, both players can see all the moves on the chess-board
Skill required-Yes
Involvement of luck -No
Game of Cards (Flesh):
Information is available -No, one does not know about the cards in other players’ hands
The skill required- Yes, how long you should hold and how big bet you should place when you’ve week cards or you have the best cards
Involvement of luck -Yes, what kind of cards you get
Game of Roullete :
Information is available -Yes, the wheel rotates in front of everyone
The skill required- No, you just place your bet on any number
Involvement of luck -Yes, where the ball would stop no-one knows
Observations :
- Where no skill is required, the outcome purely depends on luck
- Many times, even if the skill is required, luck can still play a role
- The role of luck does not wholly undermine the role of skill
- The ability to deal with hidden information is also somewhat related to skill
These lessons (importance of developing a skill) are easily applicable in the game of investing or in case of finding a solution where information is not completely available.
3 claps
