The Joy of Game Theory: An Introduction to Strategic Thinking

If you're not winning the game you are playing, you must change the game and play by your own rules.

Either we must give up the hope that societal preferences could be rational [in the economics sense] ... or we must accept dictatorship.” (Microeconomic Theory by Andreu Mas-Colell, Michael D. Whinston, and Jerry R. Green).

The yardstick for successful people is different than for unsuccessful people. Successful people are criticized for times they fail. Unsuccessful people are praised for times they achieve.

The lesson is that social planning is necessary to coordinate drivers for the optimum. And that means it is sometimes best to limit options.

3. The Threat To Repeat Punishment Has To Be Credible

2. The Target Audience Should Witness The Punishment

1. The Penalty Should Be Enforced Quickly

The principle of embarrassment can be described as a strategic move that turns a simultaneous game (trying to silence every student at once) into a sequential game (silencing one student and telling every other student they could be “next in line”). Here are some tips when using this strategic move.

Since you start at the end, this technique for solving a game is called backwards induction.

Method 5: Appear Crazy (At Your Own Risk)