BOOK REVIEW: Introducing Game Theory: A Graphic Guide by Ivan & Tuvana Pastine

Introducing Game Theory: A Graphic Guide (Introducing...)Introducing Game Theory: A Graphic Guide by Ivan Pastine
My rating: 5 of 5 stars

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This book is meant to provide a non-mathematical introduction to the basics of game theory, using examples that make the subject readily intuitively grasped. With this objective in mind, the book does a great job. Game Theory is an interdisciplinary subject that seeks to explain behavior in strategic games, a strategic game is one in which all players make decisions that can influence the outcome of the game. Let’s clarify, using a literal “game.” In chess, it’s meaningless to ask what the best move is without considering what the opponent has done and is likely to do – i.e. one’s best move must always take into account what the other player has done. This is in contrast to games of skill or chance (like a running race or roulette, respectively,) in which one doesn’t really need to respond / adapt to what the opponent has done (or will do) in order to win.

The reason I mention using an example that is literally a game is that Game Theory is used in a wide variety of domains, from military to business strategy, most of which don’t involve “games” in the common use of that word. The book draws from many disciplines, usually the ones where the concept at hand was initially developed – e.g. nuclear weapons strategy or marketing. While the book is a bit more heavily loaded with examples from the business world, it doesn’t ignore contributions from other sectors. Many of the games discussed will be familiar to the general reader at some level from the outset (e.g. the Prisoner’s Dilemma, Chicken, Battle of the Sexes, etc.) but one should finish reading with a better understanding of ideas like payoffs, equilibria, efficiency, sequential play (v simultaneous,) and coordination – all of which are crucial to applied strategic decision-making.

If you are interested in a starter book about strategic decision-making, this one is worth reading.

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