The telecom war between Reliance Jio and Airtel was only a preamble to the impending battle between Google and Jio. Nitish Kumar broke the mahagathbandhan while seeming to try to bend RJD to his will. All the schmoozing between Trump and Xi hasn’t reduced the North Korean nuclear threat. Could we have predicted these outcomes before they actually happened?  Yes we could have—not with IQ or EQ, but with ‘Game Theoretic Quotient’. A new intelligence, a new way of looking at the world. Game Sutra highlights the underlying strategic considerations of entities as diverse as heads of state, bitcoin miners and CEOs of internet companies to explain their decisive choices. Immerse yourself in its heady mix of cogent fact and smart analysis to develop your ‘game theoretic quotient’. Your world will never be the same again.

The Centre of Gravity: The Nash Equilibrium

The centre of Gravity: The nash equilibrium

Once an interactive situation has been modelled as a game, we must find an equilibrium, or a stationary point to which the game gravitates. The most widely used criteria for stationarity used in game theory is the Nash equilibrium. This concept is elaborated here, setting the stage for examining one of the most widely discussed games of all times—the prisoners’ dilemma.

In 1949, halting his studies in pure mathematics, John Nash turned his mind to the nascent field of game theory. The brilliant Hungarian computer scientist John von Neumann and the economist Oskar Morgenstern had published their magnum opus Theory of Games and Economic Behavior in 1944.5 They had found a way ...

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