Games of Strategy

by Avinash K. Dixit, Susan Skeath, David H. Reiley Jr.

All introductory textbooks begin by attempting to convince the student readers that the subject is of great importance in the world, and therefore merits their attention. The physical sciences and engineering claim to be the basis of modern technology and therefore of modern life; the social sciences discuss big issues of governance, for example, democracy and taxation; the humanities claim that they revive your soul after it has been deadened by exposure to the physical and social sciences and to engineering. Where does the subject "games of strategy," often also called game theory, fit into this picture, and why should you study it? Dixit and Skeath's Games of Strategy offers a practical motivation much more individual and closer to your personal concerns than most other subjects. You play games of strategy all the time: with your parents, siblings, friends, enemies, even with your professors. You have probably acquired a lot of instinctive expertise, and we hope you will recognize in what follows some of the lessons you have already learned. This book's authors will build on this experience, systematize it, and develop it to the point where you will be able to improve your strategic skills and use them more methodically. Opportunities for such uses will appear throughout the rest of your life; you will go on playing such games with your employers, employees, spouses, children, and even strangers.
Not that the subject lacks wider importance. Similar games are played in business, politics, diplomacy, wars--in fact, whenever people interact to strike mutually agreeable deals or to resolve conflicts. Being able to recognize such games will enrich your understanding of the world around you, and will make you a better participant in all its affairs.

Genres: Economics, Business, Nonfiction, Mathematics, Textbooks, School, Science

688 pages, Hardcover

First published June 1, 1999

About the author

Avinash Kamalakar Dixit (born August 6, 1944 in Bombay, India) is an Indian-American economist. He is currently John J. F. Sherrerd '52 University Professor of Economics Emeritus at Princeton University, Distinguished Adjunct Professor of Economics at Lingnan University (Hong Kong) and Senior Research Fellow at Nuffield College, Oxford.

Dixit received a B.Sc. from Bombay University in 1963 in Mathematics and Physics, a B.A. from Cambridge University in 1965 in Mathematics (Corpus Christi College, First Class), and a Ph.D. in 1968 from the Massachusetts Institute of Technology in Economics.

Dixit has been the John J. F. Sherrerd '52 University Professor of Economics at Princeton University since July 1989. He is also Distinguished Adjunct Professor of Economics at Lingnan University (Hong Kong) and Senior Research Fellow at Nuffield College, Oxford. He previously taught at Massachusetts Institute of Technology, at the University of California, Berkeley, at Balliol College, Oxford and at the University of Warwick. In 1994 Dixit received the first-ever CES Fellow Award from the Center for Economic Studies at the University of Munich.

Dixit has also held visiting scholar positions at the International Monetary Fund and the Russell Sage Foundation. He was President of the Econometric Society in 2001, and was Vice-President (2002) and President (2008) of the American Economic Association. He was elected to the American Academy of Arts and Sciences in 1992 and the National Academy of Sciences in 2005.

With Robert Pindyck he is author of “Investment Under Uncertainty” (Princeton University Press, 1994; ISBN 0691034109), the first text-book exclusively about the real options approach to investments, and described as “a born-classic” in view of its importance to the theory.

(from Wikipedia)

Reviews

[dameolga · Rating 5 out of 5]

So far in my academic life, Games of Strategy has been the only textbook that I have read cover to cover and actually enjoyed. This book is a lovely introduction to the world of game theory. It is one of those subjects that, once you've learned it, you can't look at the world the same way again.

I particularly enjoy the wide variety of topics covered, from auction design to bargaining to strategic voting to evolutionary games. For all of these topics, Dixit, Skeath, and Reiley manage to provide effective explanations on how to analyze each situation and insightful examples of real life applications. I cannot imagine how the book could be improved upon. I've had a fun semester with it.

[afloatingpoint · Rating 4 out of 5]

8/28/13: So far, the book has got my interest. I like the everyday examples the authors gave to make formal game theory much easier to understand. Also, the book overall is very entertaining.

12/28/13: I didn't read the book from cover to cover, but if I had the time, I would have. It's honestly an awesome book: example based, accessible, humorous, and very detailed, especially towards the end.

Will pick this up again some day.

[Moshe Zadka · Rating 4 out of 5]

A thorough, accessible, review of game theory. It is designed to be accessible to mathematically naive readers, which is a plus for some I guess, but I missed a deeper mathematical grounding. I loved, though, the real-world applications -- fascinating case studies, including the Cuban missile crisis.

[Dennis Podryadchikov · Rating 5 out of 5]

This book is not for everyone. It is for those who are interested in strategies and optimal decisions. Once a person realizes that life consists of strategic games, this book becomes a treasure chests with strategic thinking and formulas. Even if one does not enjoy formulas, reading conclusions and resumes will enhance one's thinking significantly. People who will benefit the most from this book are politicians, administrative workers, auction participants, and anyone who is engaged in negotiations. The authors skillfully explain the nuts and bolts of strategic thinking in all those and other areas of life. Any reader who is not afraid to tackle 800 plus pages will not be disappointed.

[Oleksandra Manson · Rating 5 out of 5]

Стратегические игры – игры, которые мы ведём в повседневной жизни, в политике, бизнесе, войнах. В биологии, на которую существенно повлияли концепции эволюционных игр. Конечно же, теория игр используется для анализа взаимоотношений между людьми (соответственно в психологии, философии). Спорт, азартные игры, аукционы, - всё это отличные примеры видов деятельности человека, которые развивались и продолжают развиваться параллельно теории игр.
Будете ли вы вести переговоры, принимать важное решение в жизни, решать какую-либо задачу - я уверенна, что в каждой из этих ситуаций вам будет чуточку легче после прочтения данной книги :)
Стратегии — это не что иное, как имеющиеся в распоряжении игроков варианты выбора, однако даже эта базовая концепция требует дальнейшего изучения и уточнения. Ходят ли игроки одновременно, поочерёдно, какой информацией обладает каждый из игроков, какое количество вариантов для хода есть у каждого.. и так далее. Авторы книги прекраснейшим образом помогут вам разложить всё по полочкам, объяснят основные базовые понятия и направят дополнительными статьями в нужное русло, если хочется поразмыслить над более «математическими» заданиями.
Этот учебник помог мне не только углубиться в теорию игр и понять лучше как работают механизмы разных стратегических игр, но и показал насколько широко применяются разные концепции данной науки в политике и экономике.
Книга не столько «глубоко» уходит в математику, хотя рассматривается достаточно большое количество задач и примеров, сколько на теоретическом уровне показывает методы и практики игр.

Приведу один из самых интересных и понятных примеров теории стратегии и ее последствий для прогнозирования поведения участников игры - дилемма заключенных:
Мужа и жену допрашивают отдельно, при этом каждый из них может либо признаться в совершении преступления, либо полностью отрицать свою причастность к нему.

В этой игре у обоих игроков есть доминирующая стратегия. Каждому из них выгоднее сознаться независимо от того, что сделает другой. В случае равновесного исхода оба игрока принимают решение признать свою вину и каждый получает 10 лет тюрьмы. Однако если бы оба решили все отрицать, это бы обеспечило им более благоприятный исход — всего по 3 года тюремного заключения.

Увы, каким бы ни было поведение другого игрока, каждый выиграет больше, если предаст.
В зависимости от того будет ли у нас эта игра сыграна один раз, либо будет повторяться конечное, либо бесконечное количество раз, игра будет иметь разные стратегии.
Много нового, уйма интересной информации! Советую!

[Grant · Rating 4 out of 5]

Interesting, though didn't always hold my attention. A very comprehensive study of game theory. Too comprehensive if, like me, you wanted the basics and not too much of the advanced, finer detail. Then again, you always have the option to skim over sections, which is what I did for the latter chapters of the book.

While the later chapters did feel like a bridge too far, the earlier chapters were very interesting and gave a good grounding in game theory.

I have a mathematical background but was hoping for more of a verbal, rather than mathematical, reasoning for some real-world examples. Unfortunately, the book concentrated almost exclusively on the maths.

More a book for someone doing a course in game theory, rather than someone casually interested, but the casual reader will find it edifying too, especially in the earlier chapters.

[Emre Ergin · Rating 4 out of 5]

Used this as a textbook for a 4th year elective that I taught. While the topic coverage is on point, I did not like how it tried to not use any calculus for even the concepts that clearly needed them. It also kept apologizing for taking derivatives when it could not evade them. Furthermore, while clearly is useful for a starting concept, a 2 by 2 prisoner's dilemma is not the ever working example across all the topics of the game theory that the book clearly thinks.

Still, for someone who really hates math, and has students who clearly do, this book might be a middle ground. However, do we need books for people who really is not interested in using the right tools for the right job?

[Ihab · Rating 3 out of 5]

One of the few textbook I have read throughout the whole term, and I don't think I have paid so much attention before

it is a shame the unsolved exercises exist without any possibility of checking if my answers were actually correct

that being said, it is one of the most exhaustive books I have read about game theory; very detailed, beginner-friendly, and it does dive really, really deep in the theories

[Zhe Min · Rating 5 out of 5]

This book was my introduction into the world of game theory in high school! The explanations and theory are very well-written and I feel that the book did a really good job breaking down all the fundamentals and basic concepts in this field for beginners reading about game theory for the first time.

[Amal · Rating 4 out of 5]

Finished reading the 4th Edition of this book.

Examples from everyday life, history, sports and tv-shows is all what a novice and a grad student needs to be compelled to this thought of chain.

One of the best one’s out there!

[Kirill · Rating 3 out of 5]

Хорошая книга, но точно не подходит для тех кто хочет в общих чертах познакомиться с теорией игр. Слишком много "избыточной" информации. Кажется что книга лучше всего зайдёт экономистам. Из плюсов — можно читать только интересующие главы.

[GV · Rating 3 out of 5]

Skimmed through most of it.

[Simon Høj Søndergaard · Rating 4 out of 5]

Really intuitive and easy read. Great explanations of game theory and fantastic examples throughout the book.

[Maksym · Rating 5 out of 5]

Didn't finish the book but won't come back to it realistically for a while. it's a great textbook though

[Dhirendra Mishra · Rating 4 out of 5]

Great piece... It doesn't get into the taboo of preaching what might be ethically right. Rather, it lets individuals decide on it. The revelation that Game Theory (and strategy) does not guarantee a win every time you participate but definitely guarantees a better player in you that participated in the game - has been the highlight.

[Naidalmaa Miyajav · Rating 5 out of 5]

uneheer goy nom bn. herev hen negen togloomiin onoliig uls tor, olon ulsiin tuvshind sudlahiig husvel ih dajgui nom bn.

[for-much-deliberation ...]

http://books.wwnorton.com/books/978-0...

"real-world examples to simplify complex theoretical ideas, helping students see the value of strategic thinking in a variety of situations"

[Renata]

I liked it, but it was definitely a challenge since I haven't had mathematics for so long.

[Zach Gray]

Good, entertaining writing. Very helpful for beginners learning the ideas and uses of game theory. Wish it had more of the mathematical applications.

[Michael Milton · Rating 4 out of 5]

About as lucid and entertaining an introduction to game theory as one could hope to find.

[Jarrod Zhang · Rating 4 out of 5]

A gentle introduction to game theory.