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.
Chapter 62: Rescuing Game Theory from the Game Theorists
Rescuing Game Theory from the Game Theorists
Game theorists hate what they call the ‘waving of hands’. The ‘waving of hands’ involves situations when theorists go beyond the conclusions emerging from the analysis of their game model and bring in supplementary facts, anecdotes or common sense to explain something, all the while vigorously waving their hands, ostensibly to distract the audience's attention from the fact that what they are saying has no basis in the model they have just presented.
But without the ‘waving of hands’, game models can appear to be very limited in their ability to say anything meaningful about the world. Usually their assumptions are such that they apply to very limited cases, if any at ...