13 of 16 people found the following review helpful
applied game theory,
This review is from: Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life (Norton Paperback) (Paperback)
This book is on strategic thinking. This is what you normally understand as game theory today. Game theory have become a mayor scientific discipline. After two Nobel prices it is a normal standard in economics. Dixit and Nalebuff describe the basics in game theory on a low level. They do not need to use mathematical equations to explain the context. The examples in this book are taken from politics, business and sports. There common model is the prison dilemma case. From this starting point they explain the various forms of co-operative behaviour to solve the games in life. The final result is to find a co-operative outcome with strategic moves. There are a lot of case studies in this book. It makes it easier to follow there ideas.
They show how deterrence was a good instrument in the cold war. They explain how a thread in business is taken on and when the thread is credible it is a good strategy to deter a potential competitor.
It is a book for everyone who is interested in strategic thinking. For the manager it is a good book for bargaining situations.
I read the book with pleasure because it makes business very simple and it is a joy to read.