Game theory books
Game theory books which is used to discover the best outcomes for games between two people, is one of the most fascinating concepts in mathematics, economics, and even psychology.or more players. This page defines the idea and discusses many games, apps, and books that delve deeper into the topic.
Describe game theory.
An economic theory called game theory, sometimes known as game-theoretic, was created to assist people in applying certain ideas to tactical circumstances. It begins with the assumption that people evaluate situations based on how they perceive other people. Consequently, your rational action is influenced by how well you understand a certain player.
You must learn to think like someone else in order to make better decisions when dealing with an opponent of some sort. Game theory has a wide range of applications, although being mostly employed in economics.
Its value is not diminished by a slight resemblance to kiddie games. Even in economic crises, negotiations, auctions, product pricing, conflicts, etc., John Von Neumann’s method of decision-making may be useful.
Kind of game theory
- Both symmetry and asymmetry
- sequential and simultaneous games
- Cooperation and opposition
- Games with zero and non-zero sums
- several shots in one game (iterative games)
- games with perfect information
- Games with imperfect information
- lengthy video games
A well-known illustration from game theory
Have a look at the prisoner’s dilemma, a standard illustration of game theory, to get a better understanding of the idea. It examines the case where two criminals are apprehended by the police for a crime but there isn’t enough concrete evidence to prosecute them.
Hence, obtaining a confession is crucial.
The convicts are questioned separately by the police, who forbid them from speaking to one another and offer them four different deals:
five years in prison if both plead guilty
If prisoner one confesses, he will receive a three-year sentence; if not, prisoner two will receive a nine-year sentence.
If prisoner one doesn’t confess, he will receive a 10-year sentence, while prisoner two will receive a two-year sentence.
If no one confesses, both will receive two years in prison.
Even though the final result is the finest, the lack of communication makes it difficult to plan ahead and maintain silence. Because they might not trust the other prisoner to keep silent, it is more possible that one of the prisoners will confess in order to avoid receiving the five-year term.
There are several similar game theory exercises that have practical implications in business, politics, economics, and other areas.
Best books about game theory
Steven Tadelis’s Introduction to Game Theory
This is one of the best works on game theory and a great introduction to ideas like rationality, optimization, decision-making, and complicated game theory. It was published by Princeton University Press. The author of the book does a fantastic job of explaining the concepts simply for those without a background in mathematics.
Better still, the book provides several instances of game theory applications in fields such as political science, business strategy, etc.
Michael Maschler, Eilon Solan, and Shmuel Zamir’s Game Theory
The fundamentals of game theory are thoroughly explained in this comprehensive 1,003-page book. For readers with a background in mathematics, it’s a good read and even includes useful activities in each chapter.
The book covers a wide range of subjects, including fixed-point theory, bargaining sets, Shapley value, traditional cooperative game theory, and equilibrium refinements. Beginners in game theory who are patient enough can benefit greatly from this book.
Oskar Morgenstern, John Von Neumann, Harold William Kuhn, and Ariel Rubinstein’s Theory of Games and Economic Behavior
This book’s commemorative 60th anniversary edition discusses the ground-breaking mathematical theory with examples from everyday life. The book also includes further reading in the form of reviews and articles written by experts in the field of game theory.
Even though it can be a challenging read at times, the writers were able to explain game theory to those with no prior knowledge of the subject by using examples from the actual world.
Avinash Dixit’s The Art of Strategy
This book instructs readers on how to be logical players that employ just pure strategy to achieve in life and business. It highlights the value of anticipating a competitor’s moves, accounting for curveballs, and more.
The author’s practical ideas offer a variety of effective methods for identifying potential outcomes and handling paradoxical choices.
- Edward C. Rosenthal’s The Complete Idiot’s Guide to Game Theory
- Edward C. Rosenthal, a game theorist, provides a non-technical introduction to the
- field and briefly discusses its history. The contributions of John Nash, author of “A
- Beautiful Mind” and Nobel Prize winner, however, elevate this book to even greater distinction.
Persh Talwalkar’s The Pleasure of Game Theory: A Guide to Strategic Thinking
The topic of game theory is discussed in this book in relation to leadership. In “The Leader’s Dilemma,” the author demonstrates how people might utilize game theory to find a solution and spot weaknesses in subordinates.
It offers a fascinating perspective on striking a balance between the best replies and subpar results.
Eric van Damme’s Stability and Perfection of Nash Equilibria
In game theory, one of the fundamental ideas is the Nash equilibrium. The method, which is named after renowned mathematician John Nash, describes the best technique to come up with a solution in a two- or more-player non-cooperative game.
Yet, the author of this book delves further into the topic by providing a number of remarks on the difficulties of using Nash equilibria.
By Thomas C. Schelling, “Microbehavior and Micromotives”
This book on game theory examines how rational people choose in a given situation. It examines how they make decisions when the optimal answers depend on other people’s decisions.
This idea is examined in the book via the lens of public policy analysis.
“Game Theory: Analysis of Conflict,” by Roger Myerson.
The recent developments in game theory are thoroughly examined in this work. Myerson discusses more than 15 years’ worth of advancements and disproved theories in a number of game theory models.
The book also explains numerous methodological tenets and basics. Both as a book for private study and as a classroom companion, it is effective. This is one of the most often referenced publications on the subject, and it was published by the Harvard University Press.
With Speechify, get the most intriguing books in audiobook format.
Speechify Audiobooks is a great resource if you need to have access to math and economics study material. It includes many subcategories and titles that address difficult subjects like game theory.
The audiobooks can be used to learn about mixed strategy in real-world person games, as well as other essential ideas like coalitions, backward induction, information sets, and strategic interactions. Similar to how text highlighting and customizable playback speed can facilitate learning challenging material, whether it be through simple games like Nash equilibria or the reward matrix, etc.
For a free audiobook to help you learn more about your chosen topic, try Speechify today.
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What is a game theory illustration?
A game theory analysis example is the volunteer’s conundrum. It presents a situation in which someone must volunteer for a duty or take charge of the greater good. Think about finding accounting fraud in a business.
Whistleblower behavior might have detrimental effects for the volunteer. But, keeping quiet permits the deception to go on, potentially damaging the business and costing everyone their jobs.
Economic theory or math, what is it?
Game theory combines economics and mathematics. This area of mathematics was developed for economics with the help of mathematicians and economists, but it also has applications in other domains such as psychology, political science, and social science.
A zero-sum game is what exactly?
A game involving decision-makers in which one person loses results in an equivalent loss for the other participant is described mathematically as a zero-sum game.
What is the game theory of John Nash?
Mathematician John Nash made a similar contribution to game theory as John Charles Harsanyi by developing the Nash equilibrium, one of the most typical winning tactics in such games.
A Nash equilibrium is defined.
The Nash equilibrium, which John Nash invented, describes a situation in which the most advantageous course of action is to consistently follow the first course of action, independent of incentives.