The Art of Strategy by Avinash Dixit and Barry Nalebuff

The Art of Strategy by Avinash Dixit and Barry Nalebuff

Game theory is the study of situations where your best move depends on what someone else is going to do — which is most of the situations that matter. Two Yale and Princeton economists explain it without requiring any mathematics.

They work through backward reasoning, dominant strategies, the prisoner's dilemma, credible commitment and why burning your own bridges can be rational, using examples from auctions, salary negotiations, penalty kicks, quiz shows and the Cuban missile crisis. Each chapter ends with case studies you can attempt yourself.

The general-reader edition of the classic Thinking Strategically. The best introduction to game theory there is.

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