

Patterns of Strategic Thinking - How to Exploit Leverage - ergest
http://refactoredthinking.com/2013/05/18/patterns-of-strategic-thinking-the-secrets-of-exploiting-leverage/

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CurtMonash
I stopped reading after he misdefined game theory.

Source: I have a PhD in game theory.

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snaky
Never read anything (except academic publications) about the field you know in
deep, especially blogs and journals/magazines. Violation of this rule may lead
to depression, misanthropy and lack of faith in humanity.

BTW, the author's POV on game theory:

 _Personally I’m not a big fan of game theory for two core reasons. First it
limits your thinking to a frame of move-countermove when in real life things
are a lot more dynamic and complex. In fact, in many cases you can build quite
an advantage without worrying about what your opponents or competitors are
doing. Second it utilizes a model of the “intelligent rational decision
makers” which according to many studies in behavioral economics is incorrect._
\-- <http://refactoredthinking.com/author/refactoredthinking/>

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ergest
Yes while I'm certainly not an expert in game theory (which is still an
evolving field) my reservations with it are with the core principles of it
mentioned above. If you notice an inefficiency in the marketplace, you might
be able to exploit it before your competition even knows what moves you made.
In many cases they won't care.

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CurtMonash
Part of that may be a misunderstanding of game theory.

Game theory is about assessing what your possible strategies are, what
everybody else's possible strategies are, and what the outcomes could be.

Where game theory completely falls down is when one tries to use it for
calculating specifically what to do. Even under perfect rationality
assumptions, the calculations usually don't go well. What's worse, if you
perturb that assumption even slightly, the answers may change significantly.
(So yes, the rational behavior part of your critique is indeed a sound one.)

