Behavioral Game Theory
by Colin F. Camerer · first published 2003
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Game theory, the formalized study of strategy, began in the 1940s by asking how emotionless geniuses should play games, but ignored until recently how average people with emotions and limited foresight actually play games. This book marks the first substantial and authoritative effort to close this gap. Colin Camerer, one of the field's leading figures, uses psychological principles and hundreds of experiments to develop mathematical theories of reciprocity, limited strategizing, and learning, which help predict what real people and companies do in strategic situations. Unifying a wealth of in
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I suggest you read Camerer's Behavioral Game Theory or even a book on Evolutionary Game Theory, the former does take psychology into account and the latter allows for learning. A standard game theory book also consider imperfect information, e.g. Bayesian…
on “Nash equilibrium” ↗Some good resources on Game Theory; 1) Game Theory: A Nontechnical Introduction by Morton Davis. 2) Behavioral Game Theory: Experiments in Strategic Interaction by Colin Camerer.
on “A Brief Introduction to the Basics of Game Theory” ↗…actors are never fully rational, there is always a clique which manipulates/influences and therefore there is never a "fair" market. Human motivations and behaviour are always the key and so you need Behavioral Game Theory - https://en.wikipedia.org/wiki/Behavioral_game_theory (see book of the same name by Colin Camerer) Finally, Nassim Taleb's ideas are also very relevant here. Markets work on "Trial and Error" and "Chance",…
on “Let's make quality the norm again” ↗