Introducing game theory

A question in the comments: what books are suitable to introduce game theory to a young reader? I asked on Twitter and got loads of good replies – huge thanks to all who made suggestions:

Ariel Rubinstein’s [amazon_link id=”1906924775″ target=”_blank” ]Economic Fables[/amazon_link] (I loved this book so much it was the Enlightened Economist Book of the Year in 2012)

[amazon_image id=”1906924775″ link=”true” target=”_blank” size=”medium” ]Economic Fables[/amazon_image]

[amazon_link id=”0273684965″ target=”_blank” ]A Guide to Game Theory[/amazon_link] Fiona Carmichael

[amazon_link id=”038541580X” target=”_blank” ]Prisoner’s Dilemma: John Von Neumann, Game Theory and the Puzzle of the Bomb[/amazon_link] by William Poundstone

[amazon_image id=”038541580X” link=”true” target=”_blank” size=”medium” ]Prisoner’s Dilemma: John Von Neumann, Game Theory and the Puzzle of the Bomb[/amazon_image]

[amazon_link id=”0669246034″ target=”_blank” ]Fun and Games[/amazon_link] by Ken Binmore, or his [amazon_link id=”0199218463″ target=”_blank” ]Game Theory: A Very Short Introduction[/amazon_link]

[amazon_image id=”0669246034″ link=”true” target=”_blank” size=”medium” ]Fun and Games: A Text on Game Theory[/amazon_image]

[amazon_link id=”0393062430″ target=”_blank” ]The Art of Strategy[/amazon_link] or [amazon_link id=”0393310353″ target=”_blank” ]Thinking Strategically[/amazon_link] by Avinash Dixit and Barry Nalebuff (I’ve read these, too, and they’re pitched at a business audience so very accessible)

A critique of game theory, [amazon_link id=”0415094038″ target=”_blank” ]Game Theory: A Critical Introduction[/amazon_link] Shaun Hargreaves Heap and Yanis Varoufakis

Finally, some recommended online lectures – Ben Polak’s Yale course.

 

 

 

Complementarity and serendipity

After writing yesterday (in The Economics of Shelfies) about the complementarity between e-books and physical books, and arguing that in general different vehicles for ideas are complements rather than substitutes, I happened to read this last night in Tom Standage’s [amazon_link id=”1408842068″ target=”_blank” ]Writing on the Wall: Social Media – the first 2000 years[/amazon_link]. It’s about the circulation of handwritten poetry among groups of friends and family members in Tudor times:

“The printing press was now a century old, but rather than making obsolete the copying and sharing of documents in manuscript form, print actually increased the importance and prevalence of handwritten text. Printing pushed up demand for paper throughout Europe, encouraging production and making it cheaper (its price fell by 40% during the 15th century) and more widely available.”

The passage goes on to explain the fashion for creating ‘miscellanies’ or commonplace books, large handwritten notebooks, sometimes shared.

[amazon_image id=”1408842068″ link=”true” target=”_blank” size=”medium” ]Writing on the Wall: Social Media – The First 2,000 Years[/amazon_image]

I’m about half way through the book and will review it later this week.

The economics of shelfies

Digital technologies have obviously disrupted the publishing business as they have music and film and will do higher education. The record business was first to experience the shock and in its response offered plentiful examples of what not to do. To my mind, publishing has done much better, both in terms of the incumbents safeguarding their position and in terms of innovation with new formats and new creative options.

This is not to say that everything is ideal. There are new, damaging concentrations of market power in e-book distribution. There are too many celeb biographies and cookbooks due to the winner-takes-all dynamics – dynamics that Anita Elberse’s recent book [amazon_link id=”0571309224″ target=”_blank” ]Blockbusters[/amazon_link] explains.

[amazon_image id=”0571309224″ link=”true” target=”_blank” size=”medium” ]Blockbusters: Why Big Hits – and Big Risks – are the Future of the Entertainment Business[/amazon_image]

Still, as I’ve said a few times, the balance is positive in terms of innovation, and also number of titles available and book sales. This weekend I read this post about the ‘book porn’ phenomenon, the growth in websites like Bookshelf Porn and Explain Yourshelf, the ‘#shelfie‘ vogue on Twitter. The author of the post explains it in terms of the physical pleasure, turning pages, feeling the heft of the book, seeing the spines on the shelf.

There’s an economic account, too, namely that reading online and reading offline are complements, not substitutes. Many people made the assumption that e-books would substitute for physical books. But the sales numbers don’t bear that out, as physical book sales have not declined much (during an economic downturn) while e-book sales have soared (from a low base).

It’s the same mistake that was made when people predicted the paperless office; in fact, access to more information led to more printing of documents, not less. Or when it was predicted that telephones, or social media, would reduce face-to-face contact, when all the evidence is that they increase it (see Ed Glaeser on this).

Generally, forms of communication and vehicles for ideas are complements, not substitutes.

Top reading

It’s always interesting to see what books and thinkers are cited at conferences. I’m just back from a Franco-British one where the following all featured – it wasn’t as pretentious as the list makes it seem!

Montesquieu’s [amazon_link id=”0521369746″ target=”_blank” ]Spirit of the Laws[/amazon_link]

Beaumarchais (author of [amazon_link id=”0199539979″ target=”_blank” ]Le Mariage de Figaro[/amazon_link] and the first publisher of Voltaire)

John Stuart Mill [amazon_link id=”1492893226″ target=”_blank” ]On Liberty[/amazon_link]

[amazon_link id=”0007489625″ target=”_blank” ]Edmund Burke[/amazon_link] by Jesse Norman

and Helmuth Van Molthke on [amazon_link id=”0891415750″ target=”_blank” ]The Art of War[/amazon_link] (“No plan survives contact with the enemy.”) The last was updated with a quotation from the well-known modern philosopher Mike Tyson: “Everybody has a plan until they get punched in the face.”

Progress and the greatest irony

This being 2014, I picked up my copy of Paul Fussell’s brilliant 1975 book [amazon_link id=”0195133323″ target=”_blank” ]The Great War and Modern Memory[/amazon_link]. Although I very much want to read Margaret Macmillan’s new book, [amazon_link id=”184668272X” target=”_blank” ]The War that Ended Peace[/amazon_link], I’m tempted to say that if you only read one thing this centenary year, make it the Fussell. This early passage caught my eye:

“Every war is ironic because every war is worse than expected. Every war constitutes an irony of situation because its means are so dramatically disproportionate to its presumed ends. … But the Great War was more ironic than any before or since. It was a hideous embarrassment to the prevailing Meliorist myth which had dominated public consciousness for a century. It reversed the Idea of Progress.”

I, like many economists I would guess, incline toward meliorism. A hundred years on from Fussell’s Greatest Irony, it’s probably right to reflect on Progress, though.

[amazon_image id=”0195133323″ link=”true” target=”_blank” size=”medium” ]The Great War and Modern Memory[/amazon_image]