We like to think of ourselves as rational. This idea is the foundation for classical economic analysis of human behavior, including the awesome achievements of game theory. But as behavioral economics shows, most behavior doesn’t seem rational at all—which, unfortunately, to cast doubt on game theory’s real-world credibility.
InHidden Games,Moshe Hoffman and Erez Yoeli find a surprising middle groundbetween the hyperrationality of classical economics and the hyper-irrationality of behavioral economics. They call it hidden games. Reviving game theory, Hoffman and Yoeli use it to explain our most puzzling behavior, from the mechanics of Stockholm syndrome and internalized misogyny to why we help strangers and have a sense of fairness.
Fun and powerfully insightful, Hidden Gamesis an eye-opening argument for using game theory to explain all the irrational things we think, feel, and do.
Moshe Hoffman is a research scientist at the MIT Media Lab Human Dynamics Group and lecturer at Harvard's department of economics. His research focuses on using game theory, models of learning and evolution, and experimental methods to decipher the motives that shape our social behavior, preferences, and ideologies. He lives in Cambridge, Massachusetts.
Erez Yoeli is a research...