Decision Making Using Game Theory: An Introduction for Managers

by Anthony Kelly

Game theory is a key element in most decision making processes involving two or more people or organizations. This book explains how game theory can predict the outcome of complex decision making processes, and how it can help to improve negotiation and decision-making skills. It is grounded in well-established theory, yet the wide-ranging international examples used to illustrate its application offer a fresh approach to what is becoming an essential weapon in the armory of the informed manager. The book is accessibly written, explaining in simple terms the underlying mathematics behind games of skill. It analyzes more sophisticated topics such as zero-sum games, mixed-motive games, and multi-person games, coalitions and power. Clear examples and helpful diagrams are used throughout, and the mathematics is kept to a minimum. Written for managers, students and decision-makers in every field.

216 pages, Hardcover

First published January 1, 2003

Reviews

[Andy Spurr · Rating 4 out of 5]

Steps through the various facets of game theory in a logical way. It is tempting to skim over the maths, but that enables a deeper understanding of the more counterintuitive concepts, which are the most enlightening aspects of this book.

Lots of practical examples are provided which make sense, but the real challenge for managers is figuring out which example applies to your situation!

[Bethany · Rating 4 out of 5]

This book has some prerequisites: a basic understanding of calculus and logic.

Essentially, game theory takes a situation of various configuration (multi player, single player, etc), mathematically defines the constraints and solves for solutions. The solutions can vary when you apply cuz principles and logic. My favorite tidbit is the minimax principle and the use of regret matrices. I also fully agree with choosing the Pareto solution, even if it means less pie for me- but more pie overall!