Real life is not like chess where all the information is visible and nothing is hidden

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In The Ascent of Man, scientist Jacob Bronowski recounted how von Neumann described game theory during a London taxi ride. Bronowski was a chess enthusiast and asked him to clarify. “You mean, the theory of games like chess?”

Bronowski quoted von Neumann’s response: “‘No, no,’ he said. ‘Chess is not a game. Chess is a well-defined form of computation. You may not be able to work out the answers, but in theory there must be a solution, a right procedure in any position. Now, real games,’ he said, ‘are not like that at all. Real life is not like that. Real life consists of bluffing, of little tactics of deception, of asking yourself what is the other man going to think I mean to do. And that is what games are about in my theory.’”

The decisions we make in our lives—in business, saving and spending, health and lifestyle choices, raising our children, and relationships—easily fit von Neumann’s definition of “real games.” They involve uncertainty, risk, and occasional deception, prominent elements in poker. Trouble follows when we treat life decisions as if they were chess decisions.

Chess contains no hidden information and very little luck. The pieces are all there for both players to see. Pieces can’t randomly appear or disappear from the board or get moved from one position to another by chance. No one rolls dice after which, if the roll goes against you, your bishop is taken off the board. If you lose at a game of chess, it must be because there were better moves that you didn’t make or didn’t see. You can theoretically go back and figure out exactly where you made mistakes. If one chess player is more than just a bit better than another, it is nearly inevitable the better player will win (if they are white) or, at least, draw (if they are black). On the rare occasions when a lower-ranked grand master beats a Garry Kasparov, Bobby Fischer, or Magnus Carlsen, it is because the higher-ranked player made identifiable, objective mistakes, allowing the other