The growth of the use of game theory in various fields and increasing references in popular culture makes it important for a larger audience to become aware of the basic tenets and precepts of game theory. Many people have heard of the most basic element of game theory, the prisoner’s dilemma, but how many have a more than rudimentary understanding of how it works?
Spaniel’s aptly titled Game Theory 101 is a fine primer into understanding the core components of game theory. As noted in the introduction:
Game theory is the study of mathematical models of strategic interaction among rational decision-makers. It has applications in all fields of social science, as well as in logic, systems science and computer science. Originally, it addressed zero-sum games, in which each participant's gains or losses are exactly balanced by those of the other participants. Today, game theory applies to a wide range of behavioral relations, and is now an umbrella term for the science of logical decision making in humans, animals, and computers.
Neumann (1903-1957) was a key figure in the development of game theory. It grew as a distinct field when von Neumann published the paper “On the Theory of Games of Strategy” in 1928. Soon after the nuclear test by the Soviet Union, game theory took off as a method to understand the outcomes of nuclear war. Von Neumann is often paired with John Nash (1928–2015) as the other key figure in game theory. Nash (subject of the book (1998) and movie (2001), A Beautiful Mind by Sylvia Nasar) is the creator of the set of strategies termed the “Nash equilibrium”. This, along with the “prisoner’s dilemma” -- likely the most well-known element of game theory -- are well covered in Spaniel’s book.
Final Thought: This book has quickly explained all of the tools you will need to solve introductory level questions about matrix form games. Good luck in applying them. And always remember: weak dominance will be the bane of your existence.
Read: June 16, 2010 | Buy on Kindle
See my complete 2020 Reading list on Goodreads.
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