To a practitioner in the social sciences, game theory primarily helps to identify situations in which interdependent decisions are somehow problematic; solutions often require venturing into the social sciences. Game theory is usually about anticipating each other's choices; it can also cope with influencing other's choices. To a social scientist the great contribution of game theory is probably the payoff matrix, an accounting device comparable to the equals sign in algebra.It's a fabulous, concise introduction to game theory. I've already made it available to my Law & Econ students and urged them to read it.
Tuesday, September 28, 2010
Tom Schelling's New Game Theory Article
Tom Schelling has published a terrific primer on game theory in the journal Economics and Philosophy (here). The article is entitled, "Game Theory: A Practitioner's Approach." Here is the abstract: