In my first post to this blog I mentioned that I studied Electrical Engineering (EE) at Delft University of Technology, specialized in Computer Architecture (CA), hold an MBA from London Business School and am somewhat of a business junkie with a special interest in practical applications of Game Theory (GT) and System Dynamics (SD). At first sight this may seem a weird combination, but it is not as weird as you may think.
The brilliant Princeton mathematician John von Neumann is generally seen as the father of Game Theory. Beginning in 1928 with a famous article, von Neumann single-handedly invented the field of Game Theory, which led to the publication of his seminal 1944 book with Oskar Morgenstern, Theory of Games and Economic Behavior. But von Neumann is also considered the father of modern computer architecture. In 1944 von Neumann became involved in the ENIAC project as a consultant, which led to the publication of a paper on the concept of stored-program computers, offering brilliant solutions to the most important problems facing computer design at that time. In 1946, von Neumann and his colleagues at the Princeton Institute for Advanced Studies began the design of a new stored-program computer, referred to as the IAS computer or MANIAC. Although not completed until June 1952, MANIAC is the prototype of all subsequent general-purpose computers and architectures based on the IAS/MANIAC concepts, are often called von Neumann architectures. In its simplest form, the von Neumann architecture consists of three parts: a central processing unit (CPU), a memory and a connecting device that can transmit data between these two (often called a 'bus' or 'databus'). Although von Neumann, who died in 1957, will be remembered first and foremost for his contributions to pure and applied mathematics, including Game Theory, it is interesting to see that obviously the step from mathematics to computer architecture is only a small one.
Also Jay W. Forrester, the father of System Dynamics, has a background in computer architecture. From 1935 to 1939, Forrester studied Electrical Engineering at the University of Nebraska. Upon graduation he joined MIT as a research assistant, where he worked with Gordon S. Brown in developing servomechanics for controlling radar antennae and gun mounts. After receiving his MSc from MIT in 1945, Forrester became Director of the MIT Digital Computer Laboratory, where he was responsible for the design and construction of Whirlwind I, one of the first high-speed digital computers. When in 1956 Forrester became Professor of Management at the Sloan School of Management, he started the System Dynamics Group and with it, the field of System Dynamics. Apart from many papers and articles on System Dynamics, he published five books: Industrial Dynamics (1961), Principles of Systems (1968), Urban Dynamics (1969), World Dynamics (1971) and Collected Papers (1975).
But what is it that attracts me to the fields of Game Theory and System Dynamics? I believe it has to do with the way of thinking that is involved in both and that is very similar to the kind of skills one need to be a good computer architect. I was first introduced to Game Theory as part of my Microeconomics class, while reading for my MBA at London Business School. Not aware of von Neumann's role in the field, I was immediately attracted to the concepts. Far from a maths whiz, I am particularly interested in the practical application of Game Theory. Hence, I enjoy books like Joel Watson's Strategy: An Introduction to Game Theory, Ghemawat's Games Businesses Play and Brandenburger and Nalebuff's Co-opetition, which apply game-theoretic thinking to business oriented case studies. In a future post I may actually review some of these books in more detail.
My first interest in the field of System Dynamics dates back to 1994, reading 'The Fifth Discipline' by Peter Senge, one of Jay Forrester's PhD students at MIT. At London Business School I was lectured by one of Jay Forrester's other PhDs, John D.W. Morecroft, who in 1990 was awarded the Jay Wright Forrester Award of the System Dynamics Society. in 2002, Kim Warren, one of Morecroft's colleagues at LBS and my lecturer for 'Dynamics of Strategy' published the interesting book Competitive Strategy Dynamics. In hindsight, however, it was already in 1988/1989 that I first learned about system dynamics. In a course on modern control systems, our lecturer, Professor Honderd, told us about his cooperation with the Business and Economics departments of the Erasmus University in Rotterdam. At that time I did not fully understand how such technical insights in feedback loops, overshoot and undershoot related to these non-technical fields of study. Had I known about Jay Forrester and his background in servomechanics, this would of course not have been the case...
Hence, it is clear from the above that the combination of Electrical Engineering, Computer Architecture, Game Theory and System Dynamics is not so weird afterall!
The brilliant Princeton mathematician John von Neumann is generally seen as the father of Game Theory. Beginning in 1928 with a famous article, von Neumann single-handedly invented the field of Game Theory, which led to the publication of his seminal 1944 book with Oskar Morgenstern, Theory of Games and Economic Behavior. But von Neumann is also considered the father of modern computer architecture. In 1944 von Neumann became involved in the ENIAC project as a consultant, which led to the publication of a paper on the concept of stored-program computers, offering brilliant solutions to the most important problems facing computer design at that time. In 1946, von Neumann and his colleagues at the Princeton Institute for Advanced Studies began the design of a new stored-program computer, referred to as the IAS computer or MANIAC. Although not completed until June 1952, MANIAC is the prototype of all subsequent general-purpose computers and architectures based on the IAS/MANIAC concepts, are often called von Neumann architectures. In its simplest form, the von Neumann architecture consists of three parts: a central processing unit (CPU), a memory and a connecting device that can transmit data between these two (often called a 'bus' or 'databus'). Although von Neumann, who died in 1957, will be remembered first and foremost for his contributions to pure and applied mathematics, including Game Theory, it is interesting to see that obviously the step from mathematics to computer architecture is only a small one.
Also Jay W. Forrester, the father of System Dynamics, has a background in computer architecture. From 1935 to 1939, Forrester studied Electrical Engineering at the University of Nebraska. Upon graduation he joined MIT as a research assistant, where he worked with Gordon S. Brown in developing servomechanics for controlling radar antennae and gun mounts. After receiving his MSc from MIT in 1945, Forrester became Director of the MIT Digital Computer Laboratory, where he was responsible for the design and construction of Whirlwind I, one of the first high-speed digital computers. When in 1956 Forrester became Professor of Management at the Sloan School of Management, he started the System Dynamics Group and with it, the field of System Dynamics. Apart from many papers and articles on System Dynamics, he published five books: Industrial Dynamics (1961), Principles of Systems (1968), Urban Dynamics (1969), World Dynamics (1971) and Collected Papers (1975).
But what is it that attracts me to the fields of Game Theory and System Dynamics? I believe it has to do with the way of thinking that is involved in both and that is very similar to the kind of skills one need to be a good computer architect. I was first introduced to Game Theory as part of my Microeconomics class, while reading for my MBA at London Business School. Not aware of von Neumann's role in the field, I was immediately attracted to the concepts. Far from a maths whiz, I am particularly interested in the practical application of Game Theory. Hence, I enjoy books like Joel Watson's Strategy: An Introduction to Game Theory, Ghemawat's Games Businesses Play and Brandenburger and Nalebuff's Co-opetition, which apply game-theoretic thinking to business oriented case studies. In a future post I may actually review some of these books in more detail.
My first interest in the field of System Dynamics dates back to 1994, reading 'The Fifth Discipline' by Peter Senge, one of Jay Forrester's PhD students at MIT. At London Business School I was lectured by one of Jay Forrester's other PhDs, John D.W. Morecroft, who in 1990 was awarded the Jay Wright Forrester Award of the System Dynamics Society. in 2002, Kim Warren, one of Morecroft's colleagues at LBS and my lecturer for 'Dynamics of Strategy' published the interesting book Competitive Strategy Dynamics. In hindsight, however, it was already in 1988/1989 that I first learned about system dynamics. In a course on modern control systems, our lecturer, Professor Honderd, told us about his cooperation with the Business and Economics departments of the Erasmus University in Rotterdam. At that time I did not fully understand how such technical insights in feedback loops, overshoot and undershoot related to these non-technical fields of study. Had I known about Jay Forrester and his background in servomechanics, this would of course not have been the case...
Hence, it is clear from the above that the combination of Electrical Engineering, Computer Architecture, Game Theory and System Dynamics is not so weird afterall!
