A thread through the archive
Essays tagged “The Art of Strategy”. Follow an idea across the archive.
Scott explains why no perfect voting system exists, using examples to show how different voting procedures lead to different outcomes, and discusses mathematical proofs demonstrating that all reasonable voting systems must allow some tactical voting.
Scott explains the economics of bargaining and auctions, showing how prices emerge from negotiations between buyers and sellers when both parties lack perfect information about supply and demand.
Scott defines signaling and explains how it works through examples ranging from college degrees to diamond necklaces, emphasizing both its necessity for conveying credible information and its potential for wasteful resource destruction.
Scott explains backward reasoning in game theory through decision trees, culminating in a counterintuitive example where giving the US president line-item veto power could actually reduce the president's ability to achieve desired outcomes.
Scott introduces a 10-post sequence on game theory fundamentals, drawing from 'The Art of Strategy' by Dixit and Nalebuff, with links to all planned posts.