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Game Theory Book list by Matthew McCullough

Economics & Software Development - Book List

The following books are ordered in descending order of Matthew's preference.

by Avinash K. Dixit

Recommended by Ted Neward. A different perspective and writing style from the other volumes listed.

“I am hard pressed to think of another book that can match the combination of practical insights and reading enjoyment.”—Steven Levitt

Game theory means rigorous strategic thinking. It’s the art of anticipating your opponent’s next moves, knowing full well that your rival is trying to do the same thing to you. Though parts of game theory involve simple common sense, much is counterintuitive, and it can only be mastered by developing a new way of seeing the world. Using a diverse array of rich case studies—from pop culture, TV, movies, sports, politics, and history—the authors show how nearly every business and personal interaction has a game-theory component to it. Mastering game theory will make you more successful in business and life, and this lively book is the key to that mastery.

by Barry J. Nalebuff and Adam M. Brandenburger

Now available in paperback, with an all new Reader's guide, The New York Times and Business Week bestseller Co-opetition revolutionized the game of business. With over 40,000 copies sold and now in its 9th printing, Co-opetition is a business strategy that goes beyond the old rules of competition and cooperation to combine the advantages of both. Co-opetition is a pioneering, high profit means of leveraging business relationships.

Intel, Nintendo, American Express, NutraSweet, American Airlines, and dozens of other companies have been using the strategies of co-opetition to change the game of business to their benefit. Formulating strategies based on game theory, authors Brandenburger and Nalebuff created a book that's insightful and instructive for managers eager to move their companies into a new mind set.

Losing and winning are two extremes by which businesses are often measured. Brandenburger (Harvard Business Sch.) and Nalebuff (Yale Sch. of Management) argue that most businesses and their transactions lie somewhere between the two poles. Their liberating message is that your competitor does not have to fail for you to win. Conversely, you don't have to fail either. Your failure, in fact, can hurt your competitor. It is better, the authors assert, to have both cooperation and competition. Game theory requires drawing a representation of one's customers, suppliers, competitors, and complementers. In this strategy of business as a game, the rules, players, tactics, and scope can be changed to the individual's advantage. The authors present complicated cases to illustrate their points. The writing is usually solid, but the authors went to the well too many times with some of their examples. A little variety in illustrating their ideas would have been welcome. Such minor shortcomings aside, this title is recommended for all academic libraries.

Print Length: 307 pages Source ISBN: 0385479506 Publisher: Crown Business; 1 edition (July 13, 2011) Sold by: Random House Digital, Inc. ASIN: B004JHYREU

by Robert Axelrod

The Evolution of Cooperation provides valuable insights into the age-old question of whether unforced cooperation is ever possible. Widely praised and much-discussed, this classic book explores how cooperation can emerge in a world of self-seeking egoists-whether superpowers, businesses, or individuals-when there is no central authority to police their actions. The problem of cooperation is central to many different fields. Robert Axelrod recounts the famous computer tournaments in which the “cooperative” program Tit for Tat recorded its stunning victories, explains its application to a broad spectrum of subjects, and suggests how readers can both apply cooperative principles to their own lives and teach cooperative principles to others.

Robert Axelrod is Professor of Political Science and Public Policy at the University of Michigan. A MacArthur Prize Fellow, he is a leading expert on game theory, artificial intelligence, evolutionary biology, mathematical modeling, and complexity theory. He lives in Ann Arbor, Michigan.

Publisher: Basic Books; Revised edition (December 5, 2006) ISBN-10: 0465005640 ISBN-13: 978-0465005642

by Len Fisher

A basic introduction with diagrams and only a few math demands on the reader.

Praised by Entertainment Weekly as “the man who put the fizz into physics,” Dr. Len Fisher turns his attention to the science of cooperation in his lively and thought-provoking book. Fisher shows how the modern science of game theory has helped biologists to understand the evolution of cooperation in nature, and investigates how we might apply those lessons to our own society. In a series of experiments that take him from the polite confines of an English dinner party to crowded supermarkets, congested Indian roads, and the wilds of outback Australia, not to mention baseball strategies and the intricacies of quantum mechanics, Fisher sheds light on the problem of global cooperation. The outcomes are sometimes hilarious, sometimes alarming, but always revealing. A witty romp through a serious science, Rock, Paper, Scissors will both teach and delight anyone interested in what it what it takes to get people to work together.

by Avinash K. Dixit

Engaging and highly readable, Games of Strategy is a clear and comprehensive introduction to the study of game theory.

The third edition uses resonant, real-world examples to simplify complex theoretical ideas, helping students see the value of strategic thinking in a variety of situations.

Avinash K. Dixit is John J.F. Sherrerd University Professor of Economics at Princeton University, where he offers his popular freshman course in game theory. He is among the world’s leading economists, having made fundamental contributions in several major fields, including Game Theory. He is world famous. He is the author of many books, including Thinking Strategically (Norton, 1991), Investment Under Uncertainty (Princeton UP, 1994), and The Art of Strategy (Norton, 2009).

Hardcover: 794 pages Publisher: W. W. Norton & Company; Third Edition edition (March 23, 2009) ISBN-10: 0393931129 ISBN-13: 978-0393931129

by Martin Nowak and Roger Highfield

A societal view of Game Theory.

EVOLUTION IS OFTEN PRESENTED AS A STRICTLY COMPETITIVE ENDEAVOR. This point of view has had serious implications for the way we see the mechanics of both science and culture. But scientists have long wondered how societies could have evolved without some measure of cooperation. And if there was cooperation involved, how could it have arisen from nature “red in tooth and claw”? Martin Nowak, one of the world’s experts on evolution and game theory, working here with bestselling science writer Roger Highfield, turns an important aspect of evolutionary theory on its head to explain why cooperation, not competition, has always been the key to the evolution of complexity. He offers a new explanation for the origin of life and a new theory for the origins of language, biology’s second greatest information revolution after the emergence of genes. SuperCooperators also brings to light his game-changing work on disease. Cancer is fundamentally a failure of the body’s cells to cooperate, Nowak has discovered, but organs are cleverly designed to foster cooperation, and he explains how this new understanding can be used in novel cancer treatments.

Nowak and Highfield examine the phenomena of reciprocity, reputation, and reward, explaining how selfless behavior arises naturally from competition; how forgiveness, generosity, and kindness have a mathematical rationale; how companies can be better designed to promote cooperation; and how there is remarkable overlap between the recipe for cooperation that arises from quantitative analysis and the codes of conduct seen in major religions, such as the Golden Rule.

In his first book written for a wide audience, this hugely influential scientist explains his cutting-edge research into the mysteries of cooperation, from the rise of multicellular life to Good Samaritans. With wit and clarity, Nowak and Highfield make the case that cooperation, not competition, is the defining human trait. SuperCooperators will expand our understanding of evolution and provoke debate for years to come.

by Thomas Schelling

In eminently lucid and often charming language, Professor Schelling's work opens to rational analysis a crucial field of politics, the international politics of threat, or as the current term goes, of deterrence. In this field, the author's analysis goes beyond what has been done by earlier writers. It is the best, most incisive, and most stimulating book on the subject. (Annals of the American Academy )

An important contribution to understanding the conduct of the ambiguous conflict between the communist bloc on the one hand and the United States and its Free World Allies on the other. (Journal of Politics )

Against the backdrop of the nuclear arms race in the late 1950s, Thomas Schelling's book The Strategy of Conflict set forth his vision of game theory as a unifying framework for the social sciences. Schelling showed that a party can strengthen its position by overtly worsening its own options, that the capability to retaliate can be more useful than the ability to resist an attack, and that uncertain retaliation is more credible and more efficient than certain retaliation. These insights have proven to be of great relevance for conflict resolution and efforts to avoid war. Schelling's work prompted new developments in game theory and accelerated its use and application throughout the social sciences. Notably, his analysis of strategic commitments has explained a wide range of phenomena, from the competitive strategies of firms to the delegation of political decision power. (The Royal Swedish Academy of Sciences )

Thomas C. Schelling is Distinguished University Professor, Department of Economics and School of Public Affairs, University of Maryland and Lucius N. Littauer Professor of Political Economy, Emeritus, Harvard University. He is co-recipient of the 2005 Nobel Prize in Economics.

Publisher: Harvard University Press (May 15, 1981) ISBN-10: 0674840313 ISBN-13: 978-0674840317

by Scott P. Stevens

12 hours of high-quality video lectures by Dr. Scott Stevens, James Madison University.

Ever since modern game theory—the scientific study of interactive, rational decision making—achieved prominence in the mid-20th century, it has proven instrumental in helping us understand how and why we make decisions.

Game theory plays a crucial role in our lives and provides startling insights into all endeavors in which humans cooperate or compete, including biology, computer science, politics, agriculture, and, most importantly, economics.

by Thomas Schelling

"Schelling here offers an early analysis of 'tipping' in social situations involving a large number of individuals."—official citation for the 2005 Nobel Prize

Micromotives and Macrobehavior was originally published over twenty-five years ago, yet the stories it tells feel just as fresh today. And the subject of these stories—how small and seemingly meaningless decisions and actions by individuals often lead to significant unintended consequences for a large group—is more important than ever. In one famous example, Thomas C. Schelling shows that a slight-but-not-malicious preference to have neighbors of the same race eventually leads to completely segregated populations.

Thomas C. Schelling is the co-winner of the 2005 Nobel Memorial Prize for Economic Science. He is Distinguished University Professor Emeritus of Economics and Public Policy at the University of Maryland. He lives in Bethesda.

Print Length: 272 pages Publisher: W. W. Norton & Company; Revised edition (October 17, 2006) ASIN: B002MB968C

by John Miller and Scott Page

This book provides the first clear, comprehensive, and accessible account of complex adaptive social systems, by two of the field's leading authorities. Such systems--whether political parties, stock markets, or ant colonies--present some of the most intriguing theoretical and practical challenges confronting the social sciences. Engagingly written, and balancing technical detail with intuitive explanations, Complex Adaptive Systems focuses on the key tools and ideas that have emerged in the field since the mid-1990s, as well as the techniques needed to investigate such systems. It provides a detailed introduction to concepts such as emergence, self-organized criticality, automata, networks, diversity, adaptation, and feedback. It also demonstrates how complex adaptive systems can be explored using methods ranging from mathematics to computational models of adaptive agents.

John Miller and Scott Page show how to combine ideas from economics, political science, biology, physics, and computer science to illuminate topics in organization, adaptation, decentralization, and robustness. They also demonstrate how the usual extremes used in modeling can be fruitfully transcended.

Print Length: 284 pages Publisher: Princeton University Press (March 5, 2007) ASIN: B0041OTAIE

by John Maynard Smith

Professor John Maynard Smith has written an account of a new way of thinking about evolution which has been developed in the last ten years. The theory of games, first developed to analyse economic behaviour, is modified so that it can be applied to evolving populations. John Maynard Smith's concept of an evolutionarily stable strategy is relevant whenever the best thing for an animal or plant to do depends on what others are doing. The theory leads to testable predictions about the evolution of behaviour, of sex and genetic systems, and of growth and life history patterns. This book contains the first full account of the theory, and of the data relevant to it. The account is aimed at senior undergraduate and graduate students, teachers and research workers in animal behaviour, population genetics and evolutionary biology. The book will also be of interest to mathematicians and game theorists; the mathematics has been largely confined to appendixes so that the main text may be easily followed by biologists.

By applying game theory to the problems of population biology, the author has succeeded in inventing new and interesting ways of looking at populations and has developed a theory leading to testable predictions.

Print Length: 226 pages Publisher: Cambridge University Press (December 30, 1982) ASIN: B001CBJXSQ

by Matt Ridley

If, as Darwin suggests, evolution relentlessly encourages the survival of the fittest, why are humans compelled to live in cooperative, complex societies? In this fascinating examination of the roots of human trust and virtue, a zoologist and former American editor of the Economist reveals the results of recent studies that suggest that self-interest and mutual aid are not at all incompatible. In fact, he points out, our cooperative instincts may have evolved as part of mankind's natural selfish behavior -- by exchanging favors we can benefit ourselves as well as others. Brilliantly orchestrating the newest findings of geneticists, psychologists, and anthropologists, The Origins of Virtue re-examines the everyday assumptions upon which we base our actions towards others, whether in our roles as parents, siblings, or trade partners. With the wit and brilliance of The Red Queen, his acclaimed study of human and animal sexuality, Matt Ridley shows us how breakthroughs in computer programming, microbiology, and economics have given us a new perspective on how and why we relate to each other.

Publication Date: April 1, 1998 ISBN-10: 0140264450 ISBN-13: 978-0140264456

by Chip and Dan Heath

The primary obstacle is a conflict that’s built into our brains, say Chip and Dan Heath, authors of the critically acclaimed bestseller Made to Stick. Psychologists have discovered that our minds are ruled by two different systems—the rational mind and the emotional mind—that compete for control. The rational mind wants a great beach body; the emotional mind wants that Oreo cookie. The rational mind wants to change something at work; the emotional mind loves the comfort of the existing routine. This tension can doom a change effort—but if it is overcome, change can come quickly.

In Switch, the Heaths show how everyday people—employees and managers, parents and nurses—have united both minds and, as a result, achieved dramatic results:

● The lowly medical interns who managed to defeat an entrenched, decades-old medical practice that was endangering patients.

● The home-organizing guru who developed a simple technique for overcoming the dread of housekeeping.

● The manager who transformed a lackadaisical customer-support team into service zealots by removing a standard tool of customer service

In a compelling, story-driven narrative, the Heaths bring together decades of counterintuitive research in psychology, sociology, and other fields to shed new light on how we can effect transformative change. Switch shows that successful changes follow a pattern, a pattern you can use to make the changes that matter to you, whether your interest is in changing the world or changing your waistline.

Print Length: 322 pages Source ISBN: 0385528752 Publisher: Crown Business; 1 edition (February 16, 2010) Sold by: Random House Digital, Inc. ASIN: B0030DHPGQ

by DJason Fried & David Heinemeier Hansson

Most business books give you the same old advice: Write a business plan, study the competition, seek investors, yadda yadda. If you're looking for a book like that, put this one back on the shelf.

Rework shows you a better, faster, easier way to succeed in business. Read it and you'll know why plans are actually harmful, why you don't need outside investors, and why you're better off ignoring the competition. The truth is, you need less than you think. You don't need to be a workaholic. You don't need to staff up. You don't need to waste time on paperwork or meetings. You don't even need an office. Those are all just excuses.

What you really need to do is stop talking and start working. This book shows you the way. You'll learn how to be more productive, how to get exposure without breaking the bank, and tons more counterintuitive ideas that will inspire and provoke you.

With its straightforward language and easy-is-better approach, Rework is the perfect playbook for anyone who’s ever dreamed of doing it on their own. Hardcore entrepreneurs, small-business owners, people stuck in day jobs they hate, victims of "downsizing," and artists who don’t want to starve anymore will all find valuable guidance in these pages.

Print Length: 271 pages Page Numbers Source ISBN: 0307463745 Publisher: Crown Business (March 9, 2010) Sold by: Random House Digital, Inc. ASIN: B002MUAJ2A

by Robert Axelrod

Robert Axelrod is widely known for his groundbreaking work in game theory and complexity theory. He is a leader in applying computer modeling to social science problems. His book The Evolution of Cooperation has been hailed as a seminal contribution and has been translated into eight languages since its initial publication. The Complexity of Cooperation is a sequel to that landmark book. It collects seven essays, originally published in a broad range of journals, and adds an extensive new introduction to the collection, along with new prefaces to each essay and a useful new appendix of additional resources. Written in Axelrod's acclaimed, accessible style, this collection serves as an introductory text on complexity theory and computer modeling in the social sciences and as an overview of the current state of the art in the field.

The articles move beyond the basic paradigm of the Prisoner's Dilemma to study a rich set of issues, including how to cope with errors in perception or implementation, how norms emerge, and how new political actors and regions of shared culture can develop. They use the shared methodology of agent-based modeling, a powerful technique that specifies the rules of interaction between individuals and uses computer simulation to discover emergent properties of the social system. The Complexity of Cooperation is essential reading for all social scientists who are interested in issues of cooperation and complexity

Paperback: 248 pages Publisher: Princeton University Press (August 18, 1997) ISBN-10: 0691015678 ISBN-13: 978-0691015675

by Julian Havil

In Nonplussed!, popular-math writer Julian Havil delighted readers with a mind-boggling array of implausible yet true mathematical paradoxes. Now Havil is back with Impossible?, another marvelous medley of the utterly confusing, profound, and unbelievable--and all of it mathematically irrefutable.

Whenever Forty-second Street in New York is temporarily closed, traffic doesn't gridlock but flows more smoothly--why is that? Or consider that cities that build new roads can experience dramatic increases in traffic congestion--how is this possible? What does the game show Let's Make A Deal reveal about the unexpected hazards of decision-making? What can the game of cricket teach us about the surprising behavior of the law of averages? These are some of the counterintuitive mathematical occurrences that readers encounter in Impossible?

Havil ventures further than ever into territory where intuition can lead one astray. He gathers entertaining problems from probability and statistics along with an eclectic variety of conundrums and puzzlers from other areas of mathematics, including classics of abstract math like the Banach-Tarski paradox. These problems range in difficulty from easy to highly challenging, yet they can be tackled by anyone with a background in calculus. And the fascinating history and personalities associated with many of the problems are included with their mathematical proofs. Impossible? will delight anyone who wants to have their reason thoroughly confounded in the most astonishing and unpredictable ways.

Print Length: 264 pages Publisher: Princeton University Press (April 1, 2008) ASIN: B004VN7JL0

by John Bryant and Chris Sangwin

How do you draw a straight line? How do you determine if a circle is really round? These may sound like simple or even trivial mathematical problems, but to an engineer the answers can mean the difference between success and failure. How Round Is Your Circle? invites readers to explore many of the same fundamental questions that working engineers deal with every day--it's challenging, hands-on, and fun.

John Bryant and Chris Sangwin illustrate how physical models are created from abstract mathematical ones. Using elementary geometry and trigonometry, they guide readers through paper-and-pencil reconstructions of mathematical problems and show them how to construct actual physical models themselves--directions included. It's an effective and entertaining way to explain how applied mathematics and engineering work together to solve problems, everything from keeping a piston aligned in its cylinder to ensuring that automotive driveshafts rotate smoothly. Intriguingly, checking the roundness of a manufactured object is trickier than one might think. When does the width of a saw blade affect an engineer's calculations--or, for that matter, the width of a physical line? When does a measurement need to be exact and when will an approximation suffice? Bryant and Sangwin tackle questions like these and enliven their discussions with many fascinating highlights from engineering history. Generously illustrated, How Round Is Your Circle? reveals some of the hidden complexities in everyday things.

Print Length: 352 pages Publisher: Princeton University Press (March 20, 2011) ASIN: B005FMSVVS

by Frederick Mosteller

Remarkable selection of puzzlers, graded in difficulty, that illustrate both elementary and advanced aspects of probability. Selected for originality, general interest, or because they demonstrate valuable techniques, the problems are ideal as a supplement to courses in probability or statistics, or as stimulating recreation for the mathematically minded. Detailed solutions. Illustrated.

Print Length: 88 pages Publisher: Dover Publications (May 1, 1987) Sold by: Amazon Digital Services ASIN: B007VSWXP4

by William Poundstone

The most referenced volume in the realm of Game Theory

John von Neumann invented the digital computer, played a key role in the development of the atom bomb, constructed a branch of mathematics known as game theory, and became a defender of a movement to bomb the Russians before they could bomb us. Now comes a biography of this controversial genius and an exploration of his greatest idea--one that nearly triggered a nuclear war in 1950. Photographs.

by Morton D. Davis

A solid primer almost absent of math. Uses tables, graphs and diagrams as the visual channel.

Fascinating, accessible introduction to enormously important intellectual system with numerous applications to social, economic, political problems. Newly revised edition offers overview of game theory, then lucid coverage of the two-person zero-sum game with equilibrium points; the general, two-person zero-sum game; utility theory; other topics. Problems at start of each chapter.

by Nathan Bennett and Stephen A. Miles

A focus on career advancement and recognizing Game Theory patterns in office behaviors.

Your Career Game demonstrates how game theory can help readers to understand and proactively take charge of their career strategy. Authors Nathan Bennett and Stephen A. Miles teach readers to manage the interdependencies and interconnectedness among coworkers, managers, and others in a manner that supports personal career efforts. Then, they show how readers can become better players. The key to learning how to play the career game is "career agility"—in short, nimble individuals are better game players.

Thois book includes conversations with a wide range of successful professionals such as Ursula Burns (Xerox), Stephen Elop (Microsoft), Marius Kloppers (BHP Billiton), Ken Frazier (Merck), and Liz McCartney (The St. Bernard Project), and discusses how their career moves demonstrate elements of a game theory approach to career management. This is a must-read strategic guide for anyone who seeks to advance their career and navigate today's job market.

by Tom Siegfried

A focus on Nash’s contributions to Game Theory.

Millions have seen the movie and thousands have read the book but few have fully appreciated the mathematics developed by John Nash's beautiful mind. Today Nash's beautiful math has become a universal language for research in the social sciences and has infiltrated the realms of evolutionary biology, neuroscience, and even quantum physics. John Nash won the 1994 Nobel Prize in economics for pioneering research published in the 1950's on a new branch of mathematics known as game theory. At the time of Nash's early work, game theory was briefly popular among some mathematicians and Cold War analysts. But it remained obscure until the 1970's when evolutionary biologists began applying it to their work. In the 1980's economists began to embrace game theory. Since then it has found an ever expanding repertoire of applications among a wide range of scientific disciplines.Today neuroscientists peer into game players brains, anthropologists play games with people from primitive cultures, biologists use games to explain the evolution of human language, and mathematicians exploit games to better understand social networks. A common thread connecting much of this research is its relevance to the ancient quest for a science of human social behaviour, or a Code of Nature, in the spirit of the fictional science of psychohistory described in the famous Foundation novels by the late Isaac Asimov. In "A Beautiful Math", acclaimed science writer Tom Siegfried describes how game theory links the life sciences, social sciences, and physical sciences in a way that may bring Asimov's dream closer to reality.


Other Resources

Ambient Ideas Blog Post

http://ambientideas.com/blog/index.php/category/game-theory/

Game Theory Wikipedia Page

http://en.wikipedia.org/wiki/Game_theory

Focuses on the psychosis of John Nash.

Open source Game Theory software.

Set of curated bookmarks on the topic of Game Theory.

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