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Game Theory & Strategy · 8

Card 1 of 8: Nash Equilibrium

Canonical · Game Theory & Strategy

Nash Equilibrium

Nash proved it in one page in 1950: every game has at least one point where nobody can do better by switching strategy alone. That point isn't necessarily the best outcome for anyone — just the one nobody can unilaterally escape.

John Nash · 1950 swipe · next
Canonical · Game Theory & Strategy

The Prisoner's Dilemma

Two RAND researchers stumbled into game theory's most famous parable in 1950, later christened the prisoner's dilemma — showing rational self-interest can trap two people in a worse outcome than cooperation.

Merrill Flood and Melvin Dresher · 1950
Canonical · Game Theory & Strategy

Game Theory (Bonanno)

Most decisions that matter aren't made in isolation — they're made against other people who are also deciding. Game theory is the formal language for that situation.

Giacomo Bonanno · 2015
Canonical · Game Theory & Strategy

Repeated Games & Axelrod's Tournaments

Axelrod ran a computer Olympics for prisoner's dilemmas in 1980: every submitted strategy played every other for 200 rounds. The winner was four lines long.

Robert Axelrod · 1984
Canonical · Game Theory & Strategy

Signaling & Costly Signaling Theory

Zahavi watched Arabian babblers make extravagant, dangerous displays to signal status — wasting energy precisely to prove they could afford to waste it.

Amotz Zahavi / Michael Spence · 1973
Canonical · Game Theory & Strategy

Chicken & Brinkmanship

Russell used Chicken — two cars racing toward each other, first to swerve loses — as a metaphor for nuclear crisis. Schelling turned it into the doctrine of brinkmanship: deliberately approach the brink to force the other side to back down.

Bertrand Russell / Thomas Schelling · 1959
Canonical · Game Theory & Strategy

Mechanism Design & Auctions

Hurwicz asked the inverse question of game theory: don't predict how people will play this game — design a game people will play truthfully even while pursuing self-interest.

Leonid Hurwicz / William Vickrey · 1960
Canonical · Game Theory & Strategy

Zero-Sum vs Positive-Sum Games

In 1944 von Neumann and Morgenstern formalized games where the chips on the table never change: poker hands, fixed-budget negotiations, and wars for territory are zero-sum; trade, innovation, and trust-building are not.

John von Neumann / Oskar Morgenstern · 1944