Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life is a non-fiction book by Indian-American economist Avinash Dixit and Barry Nalebuff, a professor. Thinking Strategically. The Competitive Edge in Business,. Politics, and Everyday Life. Avinash K. Dixit and Barry J. Nalebuff. W. W. Norton & Company. Dixit and Nalebuff provide the skeleton key. You’ll benefit from Thinking Strategically and enjoy the book.” —Paul Samuelson About the authors AVINASH K.
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Avinash Dixit is Emeritus John J. Sherrerd University Professor of Economics at Princeton University, where he offered his popular freshman course in game theory. The Art of Strategy Norton, Nalebuff applies game theory to business strategy and is the co-founder of one of America’s fastest-growing companies, Honest Tea.
Would you like to tell us about a lower price? If you are a seller for this product, would you like nlebuff suggest updates through seller support? 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.
Mastering game theory will make you more successful in business and life, and this lively book is the key to that mastery. Read more Read less. Discover Prime Book Box for Kids. Add nlebuff three to Cart Add all three to List. Buy the selected items together This item: The Art of Strategy: Ships from and sold by Amazon. Customers who bought this item also bought.
Page 1 of 1 Start over Page 1 of 1. The Wisdom of Crowds. The Joy of Game Theory: An Introduction to Strategic Thinking. Markets, Mobs, and Mayhem: A Modern Look at the Madness of Crowds.
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Showing of 95 reviews. Top Reviews Most recent Top Reviews. There was a problem filtering reviews right now. Please try again later. Being a military officer, I’ve read a lot of of books nxlebuff Strategy.
I think the book is misnamed, it is really a primer on game theory. What is the difference between Game Theory and Strategy you ask? Game theory is primarily mathematical. It uses math to guide decision-making.
The Art of Strategy: Avinash Dixit and Barry Nalebuff
If you have good data on probabilities of different courses of action or a reasonably bounded problem, game theory is extremely helpful. Strategy, as the book title suggests, is more of an art when you don’t have a lot of data on probability. I found this book was really good when thinking through decisions a coach or manager would make in sports, such as when to go for two-points instead of one, how to decide which way to kick on a penalty kick.
Some great insights here. As an example, one of the insights from naleubff book is that if your opponent would gain an advantage if they knew your course of action ahead of time, there is an advantage to you to include some level of randomness in your decision-making.
It uses the example of a penalty kick in soccer. Even if you’re better kicking to the right, if the goalkeeper knows ahead of time which way you will kick, your chances of scoring a goal will decrease. You can increase your chance of scoring by randomly deciding to kick to the left some percentage here is where the math dixti in even through you aren’t as good kicking to the left.
Same would apply to a football team on the goal line. Even if you are much better running the ball, you will have a better chance of scoring touchdowns if you throw the ball a certain percentage of the time.
Again, the math proves this even if you aren’t a believer. Ddixit thinking is for everyone. We all decide and many of these decisions, involve the decisions of others. This book on strategy, from the point of view of game theory will sharpen your decision-making in many areas of your life. Strategy can be understood as the adversarial act of beating a competitor, while being aware that the competitor is trying to beat you too.
All too often, strategy is developed with nowhere near enough awareness of the possible behaviour of the competition.
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It is the position of game theorists that there are some simple basic principles that can lead to a somewhat more scientific approach to strategy.
Game theory will never achieve the status of a science because we are always dealing with people who are unique, and are driven by values, aspirations, and more, rather than by a set of universal rules. Game theory is a relatively young discipline, but has already gathered many useful insights for decision-making and practical naalebuff. It is common in Game Theory to use examples that have the benefit of identifying central issues across a wide spectrum of strategy problems.
Accessible examples are an effective vehicle for conveying the important ideas. Two prisoners held separately, are offered the opportunity to confess to the crime naoebuff are accused of committing, in return for a light sentence.
They both doubt there is hard evidence against them. If neither confesses they are likely to be acquitted.
Book review: The Art of Strategy by Avinash K. Dixit and Barry J. Nalebuff
If either one confesses, the other will be severely sentenced. Since they cannot confer, what would be the most prudent course of action for each one of the prisoners? The principles behind this game are very similar to decisions a retailer might have to make regarding pricing. If one prices goods high, there will be a greater margin of profit.
If, however, the competitor lowers the price, the first retailer will see his customers defecting. If the first competitor lowers his price and the competitor retains a high price, he will benefit greatly. If they both lower prices, both will return smaller profits. In the world of commerce, the game is rarely played out once, and most often with multiple players.
Much work has been done over the years to try to identify the most effective strategy in these situations. John Maynard Keynes, the 20th century economist, used a newspaper beauty contest, popular in his day, to understand the stock market.
Newspapers in his day published pictures of beautiful women, and ran a competition where the winner would be the person who correctly identified which woman most people thought was most beautiful. A stock-picker, Keynes explained, wishes to select stocks which will appreciate in value.
If a prisoner chose to confess to in order to receive a light sentence, his decision might be coloured by the thought of the friends of the prisoner who did not confess, waiting for him on his release. The presence of a well-respected stock-picker may change the opinion of investors in either direction.
Game theory aims to provide decision-makers with at least a method, if not a definitive answer to how to makes decisions that are based on the decisions others.
This book has the feel of a university course conducted by charismatic professors with a unique ability to make very complex ideas accessible and entertaining. I’m not certain why they exist as two separate books. I have no idea why this is touted as a “sequel.
It’s just Thinking Strategically repackaged but I will say that its package is prettier.
The tagline says that it’s a anr to success in business and life,” but it is not. It is game theory explained in an accessible way. I love game theory. I studied economics in college, and game theory had been my favorite class.
I enjoyed Thinking Strategically and looked forward to reading this one. Had I not read Thinking Strategically, I probably would have found this enjoyable, but I’m giving xixit two stars for the false advertising.
I greatly enjoyed this book. The authors used both contemporary pop culture and non-contemporary references. It was very easy read and enjoyable. I had to get it for one of my Master of Data Analytics class. It was way better than the class. I was able to understand everything they said though I also have my MBA with Stats concentration, so take that for what it’s worth. The authors will bring up a topic then use an example of it or use an example to bring up a topic. The examples they picked were very good though I grew up in the 80s and qnd which I’m guessing the authors did as well.
If I hadn’t taken that class, I would totally get anc book.
Very well written with good information! This book is a purchase and keep it. I didn’t have much experience or knowledge