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Hidden Games: The Surprising Power of Game Theory to Explain Irrational Human Behavior

Hidden Games: The Surprising Power of Game Theory to Explain Irrational Human Behavior

Author Erez Yoeli, Moshe Hoffman
Publisher Basic Books
Publication Date 2022-04-05
Section Mathematics
Type New
Format Hardcover
ISBN 9781541619470

Two  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, casts doubt on game theory’s real-world credibility.

In Hidden Games, Moshe Hoffman and Erez Yoeli find a surprising middle ground between 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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