Monday, August 26, 2019

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

The Art of Strategy: A Game Theorist's Guide to Success in Business and Life The Art of Strategy: A Game Theorist's Guide to Success in Business and Life by Avinash K. Dixit
My rating: 4 of 5 stars

I thoroughly enjoyed this. A very smart book.

It contains the obligatory decision tree, ultimatum game, prisoner's dilemma and nash equilibrium. But it also has much more. Even concepts like how stores offering to "match any competitor's price" could be a method of enforcing collusion pricing.

Certain terms, like the Minimax theory, Winner's curse, and discussion on the BATNA brought me back to grad school. The method of guessing the correct multiple choice answer without even knowing the question was excellent

I'm not sure how useful some of the multi-player theories are in practice, unless you're dealing with professionals. Let's face it, most people don't think through these decisions all that much, so they might decide to act "irrationally", which would mean your optimal decision isn't all that optimal (people might exchange their number for another, despite the math showing it's always a bad decision, etc.).

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