In episode 403 of The Brainy Business podcast, neuroscientist and physicist Kelly Clancy, through her extensive experience at MIT, Berkeley University College London, and DeepMind, provides a profound exploration of the psychology of games and their influence on behavior and decision-making. Kelly's expertise in neuroscience and game design is evident as she connects concepts from these fields to offer a comprehensive understanding of the topic. Her book, Playing with Reality, delves deep into the history and significance of games, emphasizing their role in shaping human behavior and thought processes.  Throughout the conversation, Kelly highlights the impact of games in shaping behaviors, the significance of balancing innovation with maintenance, and the power of experiential games in fostering empathy and understanding. She presents valuable insights into the role of games in shaping economic concepts, fostering understanding, tolerance, and better conversations, and the strategic and innovative aspects of game design for creating new systems and marketplaces.  Kelly's examples and anecdotes effectively illustrate the broader implications of gaming in various contexts, making it clear that games are not just about entertainment but can also have profound effects on decision-making and societal dynamics. Kelly's expertise and passion for the subject shine through, making the episode an engaging and informative exploration of the psychology of gaming. In this episode, you will be able to: Explore the profound influence of games on human culture and societal norms. Understand the intersection of neuroscience and artificial intelligence in shaping game design and player experience. Discover the application of behavioral economics in driving strategic decision-making and consumer behavior within businesses. Trace the historical significance of games and their impact on modern thought and innovation. Learn the art of designing effective incentive systems to drive organizational performance and foster innovation. Show Notes: 00:00:00 - Introduction Melina introduces Kelly Clancy, author of Playing with Reality, and sets the stage for a conversation about the history and impact of games on society. 00:02:30 - Kelly's Background and Interest in Games Kelly shares her background as a neuroscientist and physicist and her interest in the history of games, which stems from her work at DeepMind and her observations of how games influence scientific thought. 00:05:51 - Definition of Games Kelly defines games as systems with a goal and restrictions on how to achieve that goal, highlighting the importance of following rules and how games have been influential in shaping behavior and learning. 00:09:00 - Influence of Games on Behavior and Dopamine System Kelly discusses how games can shape behavior through the manipulation of the dopamine system, leading to behaviors that may not align with personal values, and the potential dangers of games encouraging individuals to abandon their values to win. 00:13:38 - Designing Systems and Mechanism Design Kelly explores the concept of mechanism design and the importance of thinking at a systems level, drawing parallels between game design and designing systems to elicit specific behaviors, with examples from the tech industry. 00:16:25 - Designing Games for Honesty Kelly discusses the goal of designing games where everyone can win by being honest. The importance of incentivizing the right behaviors within organizations is highlighted. 00:17:54 - Incentivizing Different Strategies Kelly suggests incentivizing different personality types within organizations to balance innovation with maintenance work. She emphasizes the need to reward solid, clever work alongside innovation. 00:21:31 - Sports and Games The guest discusses the historical significance of sports as a physical conditioning for conflict resolution. She explores the idea of trying on different personali