Monday, September 07, 2026

Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life

Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life by Avinash K. Dixit

Applied game theory helps guide decision making and identify some "bad outcomes". People will often alter their decisions based on what others are doing and how they perceive the outcomes will be. Even the type of way a decision is made can significantly impact the outcome. (The Roman method of focussing on possible punishments first will produce different results than American method of deciding guilt first then punishment later.) I recall Chicago's Olympic bid, which was thought to be the overwhelming frontrunner being derailed in part because may thought others would vote for it. That example was way past those in the book which was written decades ago. The book includes many examples from sports hall of fame voting to union negotiations. The "Tragedy of the Commons" even makes an appearance.

 

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