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Hidden Games: The Surprising Power of Game Theory to Explain Irrational Human Behavior Author: Yoeli, Erez & Hoffman, Moshe ISBN: 9781541619470 Publisher: Basic Books Year: 202204
Economics, Game theoryTwo MIT economists show how game theory–the ultimate theory of rationality–explains irrational behavior We like to think of ourselves as rational. This idea is the foundation for classical economic analysis of human behavior, including the awesome achievements of game theory. But as behavioral economics shows, most behavior doesn’t seem rational at all–which, unfortunately, to cast doubt on game theory’s real-world credibility. In Hidden Games ,Moshe Hoffman and Erez Yoeli find a surprising middle groundbetween the hyperrationality of classical economics and the hyper-irrationality of behavioral economics. They call it hidden games. Reviving game theory, Hoffman and Yoeli use it to explain our most puzzling behavior, from the mechanics of Stockholm syndrome and internalized misogyny to why we help strangers and have a sense of fairness. Fun and powerfully insightful, Hidden Games is an eye-opening argument for using game theory to explain all the irrational things we think, feel, and do.
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