The Art of Strategy: A Game Theorist's Guide to Success in Business and Life

by Avinash K. Dixit, Barry J. Nalebuff

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 will make you more successful in business and life, and this lively book is the key to that mastery.

Product Details

ISBN-13:	9780393337174
Publisher:	Norton, W. W. & Company, Inc.
Publication date:	01/04/2010
Pages:	512
Product dimensions:	5.40(w) x 8.10(h) x 1.00(d)

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.

Table of Contents

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