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“I am hard pressed to think of another book that can match the combination of practical insights and reading enjoyment.”—Steven Levitt
Game theory means rigorous strategic thinking. It’s the art of anticipating your opponent’s next moves, knowing full well that your rival is trying to do the same thing to you. Though parts of game theory involve simple common sense, much is counterintuitive, and it can only be mastered by developing a new way of seeing the world. Using a diverse array of rich case studies—from pop culture, TV, movies, sports, politics, and history—the authors show how nearly every business and personal interaction has a game-theory component to it. Mastering game theory will make you more successful in business and life, and this lively book is the key to that mastery.
Introduction How Should People Behave in Society?
Part I
1 Ten Tales of Strategy 3
2 Games Solvable by Backward Reasoning 32
3 Prisoners' Dilemmas and How to Resolve Them 64
4 A Beautiful Equilibrium 102
Epilogue to Part I 137
Part II
5 Choice and Chance 141
6 Strategic Moves 173
7 Making Strategies Credible 201
Epilogue to Part II: A Nobel History 229
Part III
8 Interpreting and Manipulating Information 235
9 Cooperation and Coordination 270
10 Auctions, Bidding, and Contests 301
11 Bargaining 335
12 Voting 359
13 Incentives 386
14 Case Studies 409
Further Reading 443
Workouts 447
Notes 457
Index 473
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Overview
“I am hard pressed to think of another book that can match the combination of practical insights and reading enjoyment.”—Steven Levitt
Game theory means rigorous strategic thinking. It’s the art of anticipating your opponent’s next moves, knowing full well that your rival is trying to do the same thing to you. Though parts of game theory involve simple common sense, much is counterintuitive, and it can only be mastered by developing a new way of seeing the world. Using a diverse array of rich case studies—from pop culture, TV, movies, sports, politics, and history—the authors show how nearly every business and personal interaction has a game-theory component to it. Mastering game theory ...