OUTPLAYED

An impressively accessible synopsis of game theory, its history, and its real-world applications.

According to Lockwood, some embryonic form of game theory has been around since the beginning. In the book of Genesis, one detects an illustrative argument against “the calamitous and long-lasting consequences of failing to cooperate.” Similarly, the author discovers some fledgling version of game theory in the ancient works of writers like Thucydides and Sun Tzu. Nonetheless, game theory wouldn’t become a formal branch of mathematics until the 20th century as a consequence of the groundbreaking work of John Nash and John Von Neumann. Lockwood not only limns a remarkably lucid account of game theory’s evolution—he announces his intention to avoid discussions of mathematical formulas—he lays bare its fundamental precepts, including its most famous problem, the prisoner’s dilemma. Furthermore, the author analyzes the application of game theory in practical life, assessing its predominance in sexual and corporate competition, auctions, and elections as well as nuclear strategy, with an emphasis on mutually assured destruction. Lockwood sees game theory essentially everywhere and argues that a rudimentary understanding of it is therefore necessary: “It shows us when to cooperate or compete. It informs us on when to fight or sue for peace. It demonstrates how to structure incentives to achieve better outcomes. With a knowledge of game theory, we are less likely to be outplayed by others.” The author’s analysis is as rigorous as it is thorough, and his command of game theory, unimpeachable. On occasion he helpfully, if unwittingly, shows the limitation of game theory—his critique of the Electoral College, for example, evinces a less-than-sophisticated understanding of its historical purposes. However, his prose is unfailingly clear, a noteworthy feat given the technically prohibitive nature of the subject matter. This is a marvelously concise introduction to game theory, one especially suitable for the intellectually curious but mathematically challenged.

A brief but comprehensive primer on game theory.