Summary of Avinash K. Dixit & Barry J. Nalebuff's Thinking Strategically

Please note: This is a companion version & not the original book. Book Preview:

#1 We begin with ten tales of strategy from different aspects of life, and offer preliminary thoughts on how to play. Many of you will have faced similar problems in everyday life, and will have reached the correct solution after some thought or trial and error.

#2 The hot hand misconception is when athletes seem to have a long streak of consecutive successes, and sports commentators proclaim that the athlete has a hot hand. However, this is a misperception of reality. A more rigorous test shows that a basket is less likely to follow a miss than a basket.

#3 The left hand may even help the right hand when it is stronger, as in the case of Larry Bird and his left-handed shooting. When the left hand is stronger, it may be used less often.

#4 The copycat strategy is common in sailboat racing, and it is also used in stock-market analysts and economic forecasters. The leading forecasters have an incentive to follow the pack and produce predictions similar to everyone else’s.

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