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. Are the winners of reality-TV contests instinctive game theorists? Do big-time investors see things that most people miss? What do great poker players know that you don’t? Mastering game theory will make you more successful in business and life, and this lively book is the key to that mastery.
Avinash Dixit is an economics professor at Princeton University, and Barry Nalebuff is a professor of economics and management at Yale School of Management. They practice what they preach—Dixit is one of the most successful researchers and teachers among economists, while Nalebuff applies game theory to business strategy and is the cofounder of one of America’s fastest growing companies, Honest Tea.