Physics Science

A good example of how to write at the “popular” end of the popular science spectrum. Game theory in general deals with settings in which each player has to choose one of several strategies without knowing other players’ choices, and gets a payoff depending on everyone’s choices (note this is rather different from what we call games in everyday language). Such games typically have a Nash equilibrium, which (roughly speaking) is the result when players behave selfishly; but there may be some different “cooperative” choices of strategies that would make everyone better off (a “social optimum”). This paradox or “logical trap” is usually illustrated by the Prisoner’s Dilemma story. Observing where this situation occurs and contemplating ways of getting around them by “self-enforcing strategies” — how cooperation might be achieved in the face of temptations to cheat — are the main themes of the book, which is well paced and engagingly easy to read. Some highlights are

(1) Discussion of “7 deadly dilemmas” given cute names by theorists (Prisoner’s Dilemma; Tragedy of the Commons; Free Rider; Chicken; Volunteer’s Dilemma; Battle of the Sexes; Stag Hunt) — models in which there is math theory.

(2) A lengthy verbal discussion of strategies to promote trust and cooperation (e.g. making it costly to change your mind later; deliberately cutting off your escape routes).

(3) Martin Nowak’s 5 rules for the social evolution of cooperation.

While the in-text accounts of scientific studies in the human social world or in biology are conversationally casual, the end-notes (comprising 1/5 of the book) provide citations to the scientific literature — a definite improvement on most books at this level.

All popularizers tend to exaggerate the scope of applicability of their subject, but this book less so than most. Let me just mention two ways in which the real world is more complicated than the book implies.

(4) Except in special cases where the payoff is money and nothing else matters, the payoff has to be modeled as some number of abstract “points” (or “utils”, in jargon) which one can’t actually measure. And then any observed behavior can be construed as optimal behavior in some game theoretic model. So game theory is more like a useful way of thinking about issues, and less like a traditional scientific theory which makes testable predictions

(5) In complicated real world economic situations, trying to make everyone better off is both fiendishly complicated and involves some kind of tax and subsidy scheme; introducing such things creates its own moral hazard outside the context of the one particular game.

Rating: 5 / 5

Game theory is one of the most useful tookits we have, a juncture where mathematics, economics and behavorial science meet. Fisher’s book tells you what you need to know and how to use it Written in his witty, articulate prose, it is a fun and compeling read. Do not let that fool you: this is serious science, and a serious book. On a personal level, game theory can help sibling rivalry, divorce, contract disputes, and getting out of a bar fight in one piece. On larger scales, it can help us all share a fairer world: a more fair allocation of resources getting scarcer all the time, attempts to control nuclear weapons, and, yes, global warming.

The best science book of the last two years.
Rating: 5 / 5

People are simply not as cooperative as we would like them to be, and this seems to be a never-ending source of human frustration. People defect on contracts. They cheat on taxes but use the public services these taxes pay for. Politicians and businesspeople often collude in backroom deals that benefit them to the detriment of others. I could go on and on, but I am sure that you could too.

Game theory is a branch of economics that explains these frustrations by use of games meant to replicate real world transactions. Rock, Paper, Scissors is a book written to explain this simple-yet-complicated branch of economics to interested readers who do not want jargon. Len Fisher has indeed written a very engaging book that explains the fascinating basics of game theory, showing the reader not only what it is but how it applies to every day situations. After reading the book, you’ll be able to see how defectors on contracts are engaged in game of “stag hunt,” tax-avoiders who use public goods illustrate the “tragedy of the commons,” and how the reason it is hard to get folks to be the first to volunteer is part-and-parcel to the “volunteer problem.”

First, FIsher explains the basics of game theory, which is premised on the idea that when engaged in zero-sum (one gains only at another’s loss) situations, people must often decide between higher but often riskier selfish gain, or lower but (possibly) smooth cooperative gain. Thus, if you and I have made a verbal agreement where I will give you x in return for you giving me y, we can either make the trade or one of us can defect after the other has given us what has been promised. Defecting may be more profitable but riskier (as the defector risks retaliation, harm to reputation, etc), while cooperating will lead to smaller but more assured gain (ASSSUMING that the other person does not defect after we cooperate).

It is a juicy dilemma and Fisher demonstrates how this simple idea is the cause of so many of the world’s problems. Getting folks to give up nuclear weapons, for instance, is a game theory dilemma because no group wants to risk giving up weapons unless they are assured that others will do the same (and that certainty is virtually impossible to get). Employer/employee relations can be a game theory problem becuase both parties are trying to find the “Nash Equilibrium” of getting the most from the other while having to give up the least (without either party terminating the contract). Etc, etc.

Perhaps the best thing about Fisher’s book, though, is that after he demonstrates the real-world relevance of game theory, he ruminates on ways (a) that cooperation has developed out of self-intersted actors, and (b) how we can design ways to minimize the problems of game theory on social interactions. To do the first, he draws a lot on work done in biology where theories like “group selectin” and “reciprocal altruism” may have led to “survival of the altruistic” every bit as much as “survival of the fittest.” As far as how we can design ways to get around game theory dilemmas, Fisher shows how we can design social mechanisms that make it costly for defectors to defect (so as to minimize or negate their incentive to do so). And then there is that bit about quantum physics, but you’ll just have to read the book to find that out!

The only thing I did not like about the book was Fisher’s constant referral to his highly uncontrolled experiments to do with game theory (”Once, I decided to try out this theory at a wedding using slices of wedding cake…”) While they are, in a certain sense, fun, they also made me feel like I was reading something far less than a scientific explication. I think Fisher may have done better to synopsize more of the real experiments that have been done around game theory, as they are even more fascinating than the ‘wedding cake’ experiments.

That said, this book is absolutely great for those who are curious about game theory and want good explanations without mathematical and economic jargon. Fisher really digs into the psychological side of game theory and practically ensures that readers will not look at the world in the same way again.

Rating: 4 / 5