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Game-Changer: Game Theory and the Art of Transforming Strategic Situations, by David McAdams
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A radically new, and easily learned, way to outstrategize your rivals.
“The wise win before they fight, while the ignorant fight to win.” So wrote Zhuge Liang, the great Chinese military strategist. He was referring to battlefield tactics, but the same can be said about any strategic situation. Even seemingly certain defeat can be turned into victory―whether in battle, business, or life―by those with the strategic vision to recognize how to “change the game” to their own advantage.The aim of David McAdams’s Game-Changer is nothing less than to empower you with this wisdom―not just to win in every strategic situation (or “game”) you face but to change those games and the ecosystems in which they reside to transform your life and our lives together for the better.
Game-Changer develops six basic ways to change games―commitment, regulation, cartelization, retaliation, trust, and relationships―enlivened by countless colorful characters and unforgettable examples from the worlds of business, medicine, finance, military history, crime, sports, and more.
The book then digs into several real-world strategic challenges, such as how to keep prices low on the Internet, how to restore the public’s lost trust in for-charity telemarketers, and even how to save mankind from looming and seemingly unstoppable drug-resistant disease. In each case, McAdams uses the game-theory approach developed in the book to identify the strategic crux of the problem and then leverages that “game-awareness” to brainstorm ways to change the game to solve or at least mitigate the underlying problem.
So get ready for a fascinating journey. You’ll emerge a deeper strategic thinker, poised to change and win all the games you play. In doing so, you can also make the world a better place. “Just one Game-Changer [is] enough to seed and transform an entire organization into a more productive, happier, and altogether better place,” McAdams writes. Just imagine what we can do together.
30 illustrations- Sales Rank: #326549 in Books
- Published on: 2014-12-15
- Original language: English
- Number of items: 1
- Dimensions: 8.30" h x .80" w x 5.50" l, .0 pounds
- Binding: Paperback
- 304 pages
From Booklist
As a game-theory business consultant, McAdams sees the game in everything, from the Cold War to the aisles of your supermarket. In a classic mind experiment called the prisoners’ dilemma, he describes the options and four possible outcomes of the confessions of two separated prisoners using a so-called payoff matrix. Each player has a dominant strategy to confess that will maximize his or her own payoff of reduced jail time regardless of the other’s move, yet if they both confess, this advantage is nullified. This dilemma is used throughout the book to illustrate game tactics involved in football, battles of war, the ban on cigarette advertising, competitive pricing strategies, antibiotics resistance, fund-raising, and even the secrecy of the Mafia. McAdams shows how forces such as regulation, trust, and relationships allow marketers to break free of the prisoners’ dilemmas to provide products and services at competitive yet profitable prices. This is an eye-opening treatise on how game theory can help you solve problems not only in the business world but in everyday life as well. --David Siegfried
Review
Real-life lessons presented in a readily accessible way for the benefit of non-business readers. (Kirkus Reviews, Starred Review)
David McAdams’s Game-Changer is a rare book: a nontechnical first introduction to game theory that also offers a fresh perspective, on how the best strategy for playing a game can often be to change the rules. I can see that I’ll have lots of opportunities to recommend it. (Alvin E. Roth, winner of the 2012 Nobel Prize in Economics)
Ideally, business strategy books provide both general insights applicable to a broad set of competitive situations and illustrations of the theory that demonstrate the richness of the insight and the practical formulation of strategy. Game-Changer is chock-full of both insight and applications. (R. Preston McAfee, author of Competitive Solutions: A Strategist’s Toolkit)
Intriguing…. An absorbing read. (Publishers Weekly)
About the Author
David McAdams is a professor at the Duke University Fuqua School of Business. He is a leading scholar, popular teacher, and game-theory business consultant. He lives with his wife and children in Durham, North Carolina.
Most helpful customer reviews
9 of 10 people found the following review helpful.
An easier read than I expected.
By Phil-osopher
I enjoyed this book immensely. I will admit that I know a little about game theory, but I have yet to apply it. With my prior knowledge of game theory not taken into consideration, I felt this book was a easy to understand. However the book focuses only on the most common game in game theory, the prisoners dilemma. This appears to be the most common game that people play. The book offers a detailed look into the inner workings of the PD, so no prior game theory knowledge is really even necessary.
4 of 4 people found the following review helpful.
Game Theory barely included; Great for a student critically examining business competition for the first time
By VA
Calling this a book on game theory feels quite misleading, in my opinion. At best, I would recommend this book to a high school senior in AP Economics, or else a freshman business school student, really anyone who is critically examining the world of business competition for the first time. The premise of the book is that these dozens of cases are an example of a prisoner's dilemma, and each chapter is supposed to be a concept on how to escape the dilemma, with the second half being a set of case studies that "more-deeply". Often times, the most interesting piece of the case has yet to play out, and instead of applying a critical analysis of the possible outcomes, the author simply leaves it along the lines of "we'll wait and see" or "will require further investigation".
The entirety of the game theory material included in the book can be distilled to just a few pages, and if you're already familiar with prisoner's dilemma, the remaining theory could fit on a single page. The rest of the book is merely short write-ups of basic competition with about the depth one would find in the Wall Street Journal or BusinessWeek. The "examples" often feel poorly related to the individual concepts in each chapter, or else stray so far in the narrative as to make it difficult to remember the point, and sometimes to the point of not appearing to be accurate at all. I understand that in teaching materials it's necessary to generalize and make assumptions in absence of perfect comparisons, however this book does little to intuitively frame the key concept in each chapter and apply any sort of structured analysis to the thinly-detailed cases, making it all the less credible when the author makes huge leaps of logic in the "analysis". Instead, it reads like a well-written commentary on one very narrow view of competition.
As an investment analyst, I understand that I may be approaching this book with a leg-up on its target audience and therefor be overly-critical, however I have no formal education in game theory, and so the rating reflects this book's failure to teach any more game theory than could learn from a ten minute YouTube video. This book will be an interesting read for the absolute beginner, and I will in fact be recommending it to my old Intro to Business Management professor, however if you've already taken any collegiate level business management/strategy courses, or worse, an introductory game theory course (or even just some free online videos), you already know more than what this book is able to teach you.
Update:
To clarify further, part of why I find the book disappointing is that the author is clearly very knowledgeable, but in an attempt to make the book as accessible as possible to every audience, it alienates readers already familiar with reading the news about a corporate merger or Chinese-Japenese posturing in the South Pacific imagining what each player will do next to gain the upper hand. I hoped that this book would allow me to carry on this daily activity of critical analysis, but with an extra set of tools through which to make predictions. Unfortunately, the "escapes" from prisoners dilemma were only loosely applied and the theoretical basis thinly explained, making them difficult to use in a structured analysis elsewhere. I understand to some extent the effort to be "non-technical", however it makes it much more difficult to apply the theory included without the book also including a more formal structure to the case analysis. I would hope a second edition would shorten the many examples to help keep the reader from losing site of the purpose of each example, which would then allow the author to include more examples (preferably including additional political science and geopolitics). Then for the actual case studies, instead of telling the story start to finish like a newspaper article, before attempting to relate it all back to the subject in a closing paragraph, give an opening paragraph describing the situation and competitive environment, then break down the players, and invite the reader to identify the motivations, the payoffs, etc. then apply the theoretical framework for "escaping" the dilemma, then close with a summary of how it actually played out in history, if it has at all, and if not, provide a more detailed look at the possible scenarios.
6 of 7 people found the following review helpful.
Good Premise, but some bad and inaccurate examples
By cmkadmin
The basic premise of the book is dealing with a "game" known as the prisoners dilemma and ultimately ways out of it. It all culminates in a one page summary on p.146. The principles you learn are quite helpful in identifying this scenario's appearance in real life situations in business, medicine, politics, etc... The main section of the book is followed by 6 practical examples. It reads well and is almost entirely non-technical, making it a good introduction to game theory for those curious about it.
My only complaint is that some of the examples weren't chosen very well. For example, the author, very early on, encourages 'welcoming regulation'. Here, he cites the tobacco industry advertising ban as an example - as banning advertising (except print of course) freed up approximately 30% of company revenue without having a measurable effect on sales. Of course, the underlying reason is that tobacco products are highly addictive. This sort of situation is, I reckon, very rare - but perhaps you can think of more examples.
Still, all in all a good book - the concept is sound and might convince you to look into the many other aspects of game theory.
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