Too Many Fastballs

One of the lingering questions in decision science is the extent to which game theory - an abstract theory about how people can maximize their outcomes in simple interactions - is actually valid. It's a lovely idea, but does it actually describe human nature?

As usual, the answer depends. With few exceptions, lab tests of game theory find that real human beings sharply deviate from the predictions of game theory. We don't maximize gain, often because of misperceptions about risk. But people ...