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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.- Sales Rank: #22732 in Books
- Published on: 2010-01-04
- Original language: English
- Number of items: 1
- Dimensions: 8.30" h x 1.30" w x 5.50" l, .97 pounds
- Binding: Paperback
- 512 pages
Review
"It is an easy read and is written in a lively tone-which is not something I particularly recall from my lectures in the 1980s. Long live economics!" John Burns, The Times Higher Education "Unlike most of the ranks of management advice books which pad out bookshop business sections, here is one which is rigorous, fun and extremely useful all at the same time." The Economist
About the Author
Avinash Dixit is Emeritus John J.F. Sherrerd University Professor of Economics at Princeton University, where he offered his popular freshman course in game theory. He is among the world’s leading economists, having made fundamental contributions in several major fields as well as in game theory. He is the author of many books, including Dixit/Nalebuff: Thinking Strategically (Norton, 1991), Dixit/Pindyck: Investment Under Uncertainty (Princeton University Press, 1994), and Dixit/Nalebuff: The Art of Strategy (Norton, 2009).
Barry J. Nalebuff is the Milton Steinbach Professor at the Yale School of Management. Nalebuff applies game theory to business strategy and is the co-founder of one of America's fastest-growing companies, Honest Tea.
Most helpful customer reviews
199 of 211 people found the following review helpful.
Buy "Thinking Strategically"
By J. Kim
Of course. It is an updated version of their best selling book [Thinking Strategically]. I have taught an introduction to Game Theory course to college undergraduates for years and used their earlier version "Thinking strategically" as a textbook. Nalebuff and Dixit's effort on updating their classic became less than good news to college students. They put too much materials about their ABC documentary which was taken under Dr. Nalebuff's guidance while trying to put too much materials in otherwise a simple-clear book. I strongly recommend you to go to the bookstore and buy their earlier version "thinking strategically" rather than this 'confusing/messy" version.
55 of 58 people found the following review helpful.
Unnecessary after "Thinking Strategically"
By Kara
There is absolutely no need to read this book if you've read Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life.
I'm not certain why they exist as two separate books. The content is almost identical, and 90% of the examples in this one were lifted from that. I have no idea why this is touted as a "sequel." It is not. It's just Thinking Strategically repackaged (but I will say that its package is prettier). The tagline says that it's a "guide to success in business and life," but it is not. It is game theory explained in an accessible way.
I love game theory. I studied economics in college, and game theory had been my favorite class. I enjoyed Thinking Strategically and looked forward to reading this one. I was disappointed. Had I not read Thinking Strategically, I probably would have found this enjoyable, but I'm giving it two stars for the false advertising.
11 of 13 people found the following review helpful.
A masterpiece
By ServantofGod
This is simply one of the best books I had read on either game theory or strategy. It's so well written and organized in layman terms with so many great stories/examples that all who care to read only 50+ pages will learn much from it. In short, highly recommended (at least for those who had not read the authors' previous work before per warning of other reviewers)!
p.s. Below please find some of my favorite passages for your reference.
What makes something a game: you have to take into account the objectives and strategies of the other players. When guessing a number picked at random, the number isn't trying to hide. You can take the engineer's mindset and divide the interval in two and do the best possible. But if you are playing a game, then you have to consider how the other player will be acting and how those decisions will influence your strategy. Pg6
Sailboat racing offers the chance to observe an interesting reversal of a "follow the leader" strategy. The leading sailboat usually copies the strategy of the trailing boat. When the follower racks, so does the leader. The imitates the follower even when the follower is clearly pursuing a poor strategy. Why? Because in sailboat racing close doesn't count: only winning matters. |If you have the lead. The surest way to stay ahead is to play monkey see, monkey do. Stock market analysts and economic forecasters are not immune to this copycat strategy. The leader forecasters have an incentive to follow the pack and produce predictions similar to everyone else's. This way people are unlikely to change their perception of these forecasters' abilities. On the other hand, new comers take the risky strategies; they tend to predict boom or doom. Usually they are wrong and are never heard of again but now and again they are proven correct and move to the ranks of the famous. pg11
In poker, player battle this paradox when it comes to raising the stakes. If a player bets only when he ahs a strong hand, the other players will soon figure this out. In response to a raise, most other players will fold, and he'll never win a big pot. Those who raise back will have even stronger hands, and so our poor player will end up a big loser. To get others to bet against a strong hand, they have to think you might be bluffing. To convince them of this possibility, it helps to bet often enough so that you must be bluffing some of the time. This leads to an interesting dilemma. You'd like others to fold against your bluffs and thereby win with weak hands. But that won't lead to high pot victories. To convince others to raise your bets, you also need to get caught bluffing. pg24
A critical lesson in game theory: You need to understand the other player's perspective. You need to consider what they know, what motivates them, and even how they think about you. George Bernard Shaw's quip on the golden rule was to not do unto others as you would have them do unto you - their tastes may be different. When thinking strategically, you have to work extra hard to understand the perspective and interactions of all the other players in the game, including ones who may be silent. That brings us to one last point. You may be thinking you are playing one game, but it is only part of a larger game. There is always a larger game. Pg28
If you have to take some risks, it is often better to do so as quickly as possible. This is obvious to those who play tennis....That way, if you fail on your first attempt, the game won't be over. You may still have time to take some other options that can bring you back to or even ahead of where you were. The wisdom of taking risks early applies to most aspects of life, whether it be career choices, investments, or dating. Pg63
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