Schelling's Game Theory: How to Make Decisions

ISBN : 9780199857203

Robert V. Dodge
304 ページ
162 x 235 mm

Thomas Schelling won the Nobel Prize in economics "for having enhanced our understanding of conflict and cooperation through game-theory analysis." This came after he had taught a course in game theory and rational choice to advanced students and government officials for 45 years. In this book, Robert Dodge provides in language for a broad audience, the concepts that Schelling taught. Armed with Schelling's understanding of game theory methods and his approaches to problems, the general reader can improve daily decision making. Mathematics often make game theory challenging but was not a major part of Schelling's course and is even less of a factor in this book. Along with a summary of the material Schelling presented, included are problems from the course and similar less challenging questions. While considerable analysis is done with the basic game theory tool - the two-by-two matrix - much of the book is descriptive and rational decision-making is explained with stories. Chapter supplements are added to illuminate points presented by Schelling, including writings by Paul Krugman, Thomas Friedman, Steven Levitt, and others.


Foreword by Thomas C. Schelling
Chapter I Thomas Schelling and His Signature Course on Strategic Thinking
Part One: The Schelling Approach to Strategic Thinking and Decision-Making
Chapter 2 Introduction to Strategic Thought
Chapter 3 Vicarious Thinking
Chapter 4 Game Theory
Chapter 5 The Two-By-Two Matrix
Part Two: Strategies and Tactics
Chapter 6 Strategies Defined and Illustrated
Chapter 7 Tactics
Chapter 8 Self-Command
Part Three: Models as Metaphors For What Decisions Do
Chapter 9 Interaction Models
Chapter 10 The Dollar Auction
Chapter 11 Musical Chairs and Inescapable Mathematics
Part Four: The Prisoner's Dilemma, Competition and Cooperation
Chapter 12 The Prisoner's Dilemma
Chapter 13 Cooperation
Chapter 14 Coordination
Part Five: Individual Decisions and Group Agreement
Chapter 15 Collective Choice and Voting
Chapter 16 The Commons and Fair Division
Chapter 17 Case Study, Overcoming Professional Basketball's Commons Dilemma:
The Phil Jackson Story
Part Six: Decisions that Mix and Sort Populations, Decisions Based on
Chapter 18 Critical Mass and Tipping
Chapter 19 Individual Decisions and Group Outcomes
Chapter 20 Randomization in Decision-Making
Part Seven: Case Study and Review
Chapter 21 Case Study, The Cuban Missile Crisis: Analysis and Review


Robert V. Dodge is author of The Strategist: The Life and Times of Thomas Schelling and retired from 23 years of teaching at the Singapore American School.