Game theory — Elements of strategy and decision-making

Game Theory - Open Access Introduction

Game theory

Life is a series of encounters and interactions. As social creatures, we are involved in some form of cooperation and/or conflict at some scale every day. Game theory is a toolkit to understanding behavior in strategic situations, and the actions we should take in response. While game theory is not the final word on decision-making, it is a powerful starting point. This page contains a selection of introductory posts to important concepts in game theory. It’s intended for students and professionals that want to refine their understanding without bogging down in mathematics and notation.

“Game theory focuses directly on the most pressing issue of all: finding the right strategies and making the right decisions. … [It] is particularly effective when there are many interdependent factors, and no decision can be made in isolation from a host of other decisions.”

Adam Brandenburger, & Barry Nalebuff. (1996). Co-opetition.

Selected topics on game theory

Foundations of game theory

Dominance, deletion, and Nash equilibrium

Classic strategic form games

Mixed strategies and equilibria

Classic sequential games

Tipping, congestion, convergence, and tragedies

Audience

This short series on game theory is intended for two audiences: (1) undergraduate, postgraduate and high school students undertaking introductory courses in game theory; and (2) industry professionals that seek to nurture their strategic decision-making skills. Think of it as a complementary resource to your education and wider reading.

Mathematics

People say there are two types of game theorists: those in need of tools for practical application, and those in search of mathematical elegance. We are strictly in the former camp. Where possible, we avoid intensive mathematics and notation. We want to focus instead on the intuition and features of game theory. What we lose in precision, we gain in accessibility.

About us

Athenarium exists to bring notes, ideas and lessons in economics, business and decision making to a general audience. This project is another step in making topics in economics more accessible for everyone.

Further reading

  • Avinash Dixit, & Barry Nalebuff. (2008). The Art of Strategy.
  • Adam Brandenburger & Barry Nalebuff. (1996). Co-opetition.
  • Joseph Harrington Jr. (2009). Games, Strategy, and Decision-Making.
  • Robert Axelrod. (1984). The Evolution of Cooperation.
  • Thomas Schelling. (1960). The Strategy of Conflict.
  • Thomas Schelling. (1966). Arms and Influence.