Strategic Thinking: Strategic Competition in the High-Level, Political, and Daily Life

Author: Dixit
Publisher:
Publish Date: 2002-12-01
Features: This book by Nobel laureate Nalebuff from Yale University and Dixit from Princeton University demonstrates the principles of strategic thinking in game theory to readers without a background in economics through numerous vivid examples. Take one example: When Nalebuff graduated from university, he participated in a formal dance at Cambridge University and won a spinning wheel game with a ratio of 700:300. With the grand prize within reach, he inexplicably ignored his advantage of being in the leading position and took the initiative in the final round, only to fail. Later, he recalled that he had drunk too much and forgot the teachings of game theory: when in the lead, adopt a conservative strategy of allowing the opponent to go first. This top student of game theory lost to a woman who was originally in second place and had even suggested sharing the reward (see Chapter 1 of this book). Life is an endless process of decision-making. What kind of job to take, how to manage a business, whom to marry, how to raise children, whether to compete for the CEO position—all are examples of such decisions. You are not making decisions in a vacuum. Instead, you are surrounded by other decision-makers just like you. While conflict is prevalent, cooperation is also present. This book will help you learn to think strategically and increase your chances of winning in life's games. The book succeeds through storytelling. Its academic foundation lies in the "Strategic Games" course taught by Professor Dixit at the Woodrow Wilson School of Public and International Affairs at Princeton University. In short, it is the art of understanding how your opponents plan to defeat you and then defeating them. Topics such as how to win a tennis match, how a minority can defeat a majority, and why you should "love" your most hated opponent are all discussed. This is an emerging strategic science composed of simple fundamental principles. Readers from different backgrounds and industries who master these principles will elevate their ability to strategize and achieve victory.