Competition has been an integral part of man's nature. People used to do comparison before digital screens came along – harvests, card hands, sports scores, and reputations. The nature of the instinct has not changed over the years, it is the setting in which it is heightened.
By creating virtual environments with video games, social networks and online gaming environments, competition is now constant, measurable and replayable. In these settings, there is hardly ever a simple “win”, it can usually be interpreted as data, status, feedback and sometimes as a catalyst for a further round.
If you're a player, this is a digital transformation that is familiar to you. Similar psychological forces that influence engagement around the table now influence engagement in more fluid, always-on systems that are influenced by the variability of rewards, dopamine loops and behavioural reinforcement patterns.
Competition as a Digital Illusion of Control
In virtual environments, competition is designed to be fair, real-time, and achievable – even if there is a high degree of possibility. The essence of digital competition is three psychologies:
It is essential that there is progress, and that this is visible to the student, through scores, ranks, balances, and so on.
Immediate feedback loops; How they think they are skilled or not in achieving outcomes, or how much control they have of them. Such a pairing results in an illusion of control: the feeling that there is something they can do that makes a difference in the process, even in a system which is very much driven by chance.
This is particularly true in gambling casinos, where participants play casino table games. Blackjack games or roulette games are mathematically designed games that are assumed to be skill based games. The sense of control is still maintained even if probability does not change, and is enhanced by near misses and remembering the wins.
Why the Brain Treats Digital Competition Like a Reward System
Competition is not only a social phenomenon, but also a biochemical occurrence, from a neuroscience point of view. In addition to the competitive process, several systems of the brain are activated when individuals interact in digital competitions:
The dopaminergic reward pathway is associated with the expectation for rewards and not the reward itself, in particular the ventral striatum. The prefrontal cortex is involved in assessing strategy, risk and decisions.
Pressure, uncertainty and loss aversion are the response of the amygdala and stress circuits.
The great thing about virtual environments is that they occur reward prediction errors a lot of times—when the brain adjusts its expectations for the outcome. These micro adjustments have two purposes – they reinforce the engagement loops, but also fuel learning.
Simply put: The brain likes to win! It gets hooked on nearly winning and possibly winning and then the next time, it wins.
Digital systems are really powerful in this regard. The payout patterns are similar to those of intermittent reinforcement, the type known to create long-lasting engagement, whether it's a game of poker, table games, or anything else at the casino.
The Psychology of Digital Gambling-Style Environments
In a gambling-like environment, where there's randomness and yet there's also a structured choice, things get really competitive virtually.
This combination is well illustrated by websites like the Dragon Slots Casino Greece. They are disguised as entertainment systems, but are based on a familiar set of principles of behavior:
Schedules of rewarding (undesirable) behaviors are unpredictable.
- High-frequency feedback loops
- Ways of reinforcing the learning that are sensed (sight and sound).
- Rapid decision cycles
It's not the dollars and cents of results that are important to psychology, but the timing of involvement. All spins, hands or rounds reset anticipation.
This pacing can cause behavioral economists' decision fatigue, or a decrease in cognitive control as choices occur over and over again at low stakes. Still deciding (mental resistance is lessening)
Cognitive Biases That Shape Virtual Competition
There are a variety of cognitive biases that drive virtual competition.A number of cognitive biases influence virtual competition.
Competing digitally isn't in a neutral mental context. It is passed through a predictable cognitive pre-process that has a slight impact on behaviour:
1. Near-Miss Effect
When a loss is an “almost a win”, the reward circuits are activated the same way as success. This is particularly prevalent in slot systems and aids in soaking up player engagement.
2. Loss Aversion
The feeling of loss is greater than that of equal gains. This can result in “chasing behavior” in competitive digital settings.
3. Availability Heuristic
The thumping defeats of recent years are more important than the snoozes of yesteryear. One good session could throw off the long-term view.
4. Hot-Hand Illusion
Success is considered to be a run-on streak even if they are independent measures.
All these biases make up the mental environment where probability is not only calculated but also 'redone' in the minds of the players.
Social Competition: When the Audience Becomes the Opponent
The most powerful aspect of virtual environments is the addition of “social comparison,” which happens when people see other people.The one of the most impactful feature of virtual environments is the visibility of “social comparison,” or the visibility of other people.”
Private actions are turned into public events via leaderboards, rankings, live chats, and multiplayer statistics. This puts another strain on the game: not only do you have to win but you have to look like you are winning.
Competitive ecosystems can encourage users to act for a number of reasons, including:
- Status signaling
- Social validation
Instead of making a gain, relative performance is taken into consideration.
Social overlays alter perception, even in a setting where it is usually a one-on-one deal, such as in gambling. When others are winning (or it seems they are winning), it increases engagement and can speed up the anticipation cycles related to the dopamine reward mechanism.
It's not as much the game itself that counts in competition as it is the position in an ever-changing pecking order.
Design Psychology: How Systems Shape Behavior
The modern digital environment is an active, not passive, arena: it's a behavioral system that has been intentionally designed.
There are some mechanisms in the design that are observed on each of the competitive platforms:
A schedule of reinforcement that produces a varying amount of reward for a behavior is a variable reward schedule.
- Progress bars and level up systems
- The ability to return to training within seconds of a loss.
- Rapid re-entry to training when lost.
- Projects that stimulate the senses (lights, sounds, animations).
- Small achievable targets that provide ongoing “just one more” opportunities
These mechanisms are not "mechanical" forcing but they are a much stronger "nudging" of the behaviour. With time, users can get into “automatic” behaviors, engaging in action on a habit.
In games which revolve around gambling, such as casino table games, style tends to focus on the tempo and rhythm of the game, with quick turns, rapid decision-making and instant reset points. This results in a minimum reflection time and an engagement flow. So, from a behavioral economics point of view, this would be a good design. Cognitively, it decreases the room for thinking.
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