"A player gets caught up in playing a game because the instant feedback and constant interaction are related to the challenge of the game, which is defined by the rules, which all work within the system to provoke an emotional reaction and, finally, result in a quantifiable outcome within an abstract version of a larger system."
- Kapp, K. 2012. The Gamification of Learning and Instruction.

Image: charlesdeluvio, Unsplash

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This is the most succinct and complete definition of a game I've found, and it explains why gamification is so effective.
But games transcend the playful behavior we associate with childish, unstructured playtime. The compelling nature of scaffolded level and skill progression, while appropriately challenged, brings about something beyond enjoyment that can be leveraged for effective learning and problem-solving.

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At the same time, games don't need to have an implicit adverse outcome; not all games require a loser at the end. For instance, when you think of a commercial operation, there must be an implied positive sum for both parties to develop into a long-standing relationship:

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"For each transaction there is both a buyer and a seller, and their worldviews must be opposite for the transaction to occur. Markets work only because there is a plurality of views."
Brockman, J. (Ed.). 2012. This Will Make You Smarter.

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That is, each party should deem what the other has to offer to be of greater value than what they are willing to exchange themselves.
Indeed, the common conception that games should be zero-sum (that for there to be a winner, someone must lose) is what keeps us from developing enriching, long-standing collaborations:

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"Once people are thrown together in an interaction, their choices don’t determine whether they are in a zero- or nonzero-sum game; the game is a part of the world they live in. But by neglecting some of the options on the table, people may perceive that they are in a zero-sum game when in fact they are in a nonzero-sum game. Moreover, they can change the world to make their interaction nonzero-sum.

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For these reasons, when people become aware of the game-theoretic structure of their interaction (that is, whether it is positive-, negative-, or zero-sum), they can make choices that bring them valuable outcomes—like safety, harmony, or prosperity—without their having to become more virtuous or noble."
Brockman, J. (Ed.). 2012. This Will Make You Smarter.

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