Hidden Games The Surprising Power of Game Theory to Explain Irrational Human Behavior

by Yoeli, Erez; Hoffman, Moshe

• ISBN13: 9781541619470
• ISBN10: 1541619471
• Format: Hardcover
• Copyright: 2022-04-05
• Publisher: Basic Books

Summary

Two  MIT economists  show  how  game theory—the ultimate theory of rationality—explains irrational behavior    

We like to think of ourselves as rational. This idea is the foundation for classical economic analysis of human behavior, including the awesome achievements of game theory. But as behavioral economics shows, most behavior doesn’t seem rational at all—which, unfortunately, casts doubt on game theory’s real-world credibility.  

In Hidden Games, Moshe Hoffman and Erez Yoeli find a surprising middle ground between the hyperrationality of classical economics and the hyper-irrationality of behavioral economics. They call it hidden games. Reviving game theory, Hoffman and Yoeli use it to explain our most puzzling behavior, from the mechanics of Stockholm syndrome and internalized misogyny to why we help strangers and have a sense of fairness.  

Fun and powerfully insightful, Hidden Games is an eye-opening argument for using game theory to explain all the irrational things we think, feel, and do.

Author Biography

Moshe Hoffman is a research scientist at the MIT Media Lab Human Dynamics Group and lecturer at Harvard's department of economics. His research focuses on using game theory, models of learning and evolution, and experimental methods to decipher the motives that shape our social behavior, preferences, and ideologies. He lives in Cambridge, Massachusetts.

 

Erez Yoeli is a research associate at MIT's Sloan School of Management, where he directs the Applied Cooperation Team (ACT). His research focuses on altruism: understanding how it works and how to promote it. Yoeli collaborates with governments, nonprofits, and companies to apply the lessons of this research towards addressing real-world challenges like increasing energy conservation, improving antibiotic adherence, reducing smoking in public places, and promoting philanthropy. He lives in Cambridge, Massachusetts.