This book is a selection of the best articles from Game Theory
Tuesdays, a column from the blog Mind Your Decisions. Articles from
Game Theory Tuesdays have been referenced in The Freakonomics
Blog, Yahoo Finance, and CNN.com. Game
theory is the study of interactive decision making--that is, in
situations where each person's action affects the outcome for the
whole group. Game theory is a beautiful subject and this book will
teach you how to understand the theory and practically implement
solutions through a series of stories and the aid of over 30
illustrations. This book has two primary objectives. (1) To help
you recognize strategic games, like the Prisoner's Dilemma,
Bertrand Duopoly, Hotelling's Game, the Game of Chicken, and
Mutually Assured Destruction. (2) To show you how to make better
decisions and change the game, a powerful concept that can
transform no-win situations into mutually beneficial outcomes.
You'll learn how to negotiate better by making your threats
credible, sometimes limiting options or burning bridges, and
thinking about new ways to create better outcomes. As these goals
indicate, game theory is about more than board games and gambling.
It all seems so simple, and yet that definition belies the
complexity of game theory. While it may only take seconds to get a
sense of game theory, it takes a lifetime to appreciate and master
it. This book will get you started.