Game Theory

abstract

From its beginnings in the early 1900s, game theory has been a very mathematical, technical subject. However, it also provides valuable, everyday lessons that are important for managers and executives to understand. Current books and textbooks are mostly highly mathematical, and almost all are very long. This primer will deliver a focused and precise, largely nonmathematical overview of topics in game theory that are directly ­relevant managers and professionals in many fields.

Game theory is the science of action and reaction. While most ­standard economic analyses embody the science of making an optimal choice, this kind of analysis is largely undertaken in a vacuum. For ­example, every managerial economics textbook examines profit ...