Recent advances in the field, particularly Parrondo's paradox, have triggered a surge of interest in the statistical and mathematical theory behind gambling. This interest was acknowledge in the motion picture, "21," inspired by the true story of the MIT students who mastered the art of card counting to reap millions from the Vegas casinos. Richard Epstein's classic book on gambling and its mathematical analysis covers the full range of games from penny matching to blackjack, from Tic-Tac-Toe to the stock market (including Edward Thorp's warrant-hedging analysis). He even considers whether statistical inference can shed light on the study of paranormal phenomena. Epstein is witty and insightful, a pleasure to dip into and read and rewarding to study. The book is written at a fairly sophisticated mathematical level; this is not "Gambling for Dummies" or "How To Beat The Odds Without Really Trying." A background in upper-level undergraduate mathematics is helpful for understanding this work.
o Comprehensive and exciting analysis of all major casino games and variants o Covers a wide range of interesting topics not covered in other books on the subject o Depth and breadth of its material is unique compared to other books of this nature
Richard Epstein's website: www.gamblingtheory.net
Recent advances in the field, particularly Parrondo's paradox, have triggered a surge of interest in the statistical and mathematical theory behind gambling. This interest was acknowledge in the motion picture, "21," inspired by the true story of the MIT students who mastered the art of card counting to reap millions from the Vegas casinos. Richard Epstein's classic book on gambling and its mathematical analysis covers the full range of games from penny matching to blackjack, from Tic-Tac-Toe to the stock market (including Edward Thorp's warrant-hedging analysis). He even considers whether statistical inference can shed light on the study of paranormal phenomena. Epstein is witty and insightful, a pleasure to dip into and read and rewarding to study. The book is written at a fairly sophisticated mathematical level; this is not "Gambling for Dummies" or "How To Beat The Odds Without Really Trying." A background in upper-level undergraduate mathematics is helpful for understanding this work.Comprehensive and exciting analysis of all major casino games and variantsCovers a wide range of interesting topics not covered in other books on the subjectDepth and breadth of its material is unique compared to other books of this nature
Richard Epstein's website: www.gamblingtheory.net
“How could you, a mathematician, believe that extraterrestrials were sending you messages?” the visitor from Harvard asked the West Virginian with the movie-star looks and Olympian manner. “Because the ideas I had about supernatural beings came to me the same way my mathematical ideas did,” came the answer. “So I took them seriously.”
Thus begins the true story of John Nash, the mathematical genius who was a legend by age thirty when he slipped into madness, and who—thanks to the selflessness of a beautiful woman and the loyalty of the mathematics community—emerged after decades of ghostlike existence to win a Nobel Prize for triggering the game theory revolution. The inspiration for an Academy Award–winning movie, Sylvia Nasar’s now-classic biography is a drama about the mystery of the human mind, triumph over adversity, and the healing power of love.
New York Times Bestseller
“Not so different in spirit from the way public intellectuals like John Kenneth Galbraith once shaped discussions of economic policy and public figures like Walter Cronkite helped sway opinion on the Vietnam War…could turn out to be one of the more momentous books of the decade.”
—New York Times Book Review
"Nate Silver's The Signal and the Noise is The Soul of a New Machine for the 21st century."
—Rachel Maddow, author of Drift
"A serious treatise about the craft of prediction—without academic mathematics—cheerily aimed at lay readers. Silver's coverage is polymathic, ranging from poker and earthquakes to climate change and terrorism."
—New York Review of Books
Nate Silver built an innovative system for predicting baseball performance, predicted the 2008 election within a hair’s breadth, and became a national sensation as a blogger—all by the time he was thirty. He solidified his standing as the nation's foremost political forecaster with his near perfect prediction of the 2012 election. Silver is the founder and editor in chief of FiveThirtyEight.com.
Drawing on his own groundbreaking work, Silver examines the world of prediction, investigating how we can distinguish a true signal from a universe of noisy data. Most predictions fail, often at great cost to society, because most of us have a poor understanding of probability and uncertainty. Both experts and laypeople mistake more confident predictions for more accurate ones. But overconfidence is often the reason for failure. If our appreciation of uncertainty improves, our predictions can get better too. This is the “prediction paradox”: The more humility we have about our ability to make predictions, the more successful we can be in planning for the future.
In keeping with his own aim to seek truth from data, Silver visits the most successful forecasters in a range of areas, from hurricanes to baseball, from the poker table to the stock market, from Capitol Hill to the NBA. He explains and evaluates how these forecasters think and what bonds they share. What lies behind their success? Are they good—or just lucky? What patterns have they unraveled? And are their forecasts really right? He explores unanticipated commonalities and exposes unexpected juxtapositions. And sometimes, it is not so much how good a prediction is in an absolute sense that matters but how good it is relative to the competition. In other cases, prediction is still a very rudimentary—and dangerous—science.
Silver observes that the most accurate forecasters tend to have a superior command of probability, and they tend to be both humble and hardworking. They distinguish the predictable from the unpredictable, and they notice a thousand little details that lead them closer to the truth. Because of their appreciation of probability, they can distinguish the signal from the noise.
With everything from the health of the global economy to our ability to fight terrorism dependent on the quality of our predictions, Nate Silver’s insights are an essential read.
From the Trade Paperback edition.
These may not sound like typical questions for an economist to ask. But Steven D. Levitt is not a typical economist. He is a much-heralded scholar who studies the riddles of everyday life—from cheating and crime to sports and child-rearing—and whose conclusions turn conventional wisdom on its head.
Freakonomics is a groundbreaking collaboration between Levitt and Stephen J. Dubner, an award-winning author and journalist. They usually begin with a mountain of data and a simple question. Some of these questions concern life-and-death issues; others have an admittedly freakish quality. Thus the new field of study contained in this book: Freakonomics.
Through forceful storytelling and wry insight, Levitt and Dubner show that economics is, at root, the study of incentives—how people get what they want, or need, especially when other people want or need the same thing. In Freakonomics, they explore the hidden side of . . . well, everything. The inner workings of a crack gang. The truth about real-estate agents. The myths of campaign finance. The telltale marks of a cheating schoolteacher. The secrets of the Ku Klux Klan.
What unites all these stories is a belief that the modern world, despite a great deal of complexity and downright deceit, is not impenetrable, is not unknowable, and—if the right questions are asked—is even more intriguing than we think. All it takes is a new way of looking.
Freakonomics establishes this unconventional premise: If morality represents how we would like the world to work, then economics represents how it actually does work. It is true that readers of this book will be armed with enough riddles and stories to last a thousand cocktail parties. But Freakonomics can provide more than that. It will literally redefine the way we view the modern world.
Bonus material added to the revised and expanded 2006 editionThe original New York Times Magazine article about Steven D. Levitt by Stephen J. Dubner, which led to the creation of this book.Seven “Freakonomics” columns written for the New York Times Magazine, published between August 2005 and April 2006.Selected entries from the Freakonomics blog, posted between April 2005 and May 2006 at http://www.freakonomics.com/blog/.
“In this fascinating, often surprising book, Alvin Roth guides us through the jungles of modern life, pointing to the many markets that are hidden in plain view all around us.” — Dan Ariely, author of Predictably Irrational and The (Honest) Truth About Dishonesty
Most of the study of economics deals with commodity markets, where the price of a good connects sellers and buyers. But what about other kinds of “goods,” like a spot in the Yale freshman class or a position at Google? If you’ve ever sought a job or hired someone, applied to college or guided your child into a good kindergarten, asked someone out on a date or been asked out, you’ve participated in a kind of market. This is the territory of matching markets, where “sellers” and “buyers” must choose each other, and price isn’t the only factor determining who gets what.
In Who Gets What—and Why, Nobel laureate Alvin E. Roth reveals the matching markets hidden around us and shows us how to recognize a good match and make smarter, more confident decisions.
“Mr. Roth’s work has been to discover the most efficient and equitable methods of matching, and implement them in the world. He writes with verve and style . . . Who Gets What—and Why is a pleasure to read.” — Wall Street Journal
“A book filled with wit, charm, common sense, and uncommon wisdom.” — Paul Milgrom, professor of economics, Stanford University and Stanford Business School
This book represents the earliest clear, detailed, precise exposition of the central ideas and results of game theory and related decision-making models — unencumbered by technical mathematical details. It offers a comprehensive, time-tested conceptual introduction, with a social science orientation, to a complex of ideas related to game theory including decision theory, modern utility theory, the theory of statistical decisions, and the theory of social welfare functions.
The first three chapters provide a general introduction to the theory of games including utility theory. Chapter 4 treats two-person, zero-sum games. Chapters 5 and 6 treat two-person, nonzero-sum games and concepts developed in an attempt to meet some of the deficiencies in the von Neumann-Morgenstern theory. Chapters 7–12 treat n-person games beginning with the von Neumann-Morgenstern theory and reaching into many newer developments. The last two chapters, 13 and 14, discuss individual and group decision making. Eight helpful appendixes present proofs of the famous minimax theorem, several geometric interpretations of two-person zero-sum games, solution procedures, infinite games, sequential compounding of games, and linear programming.
Thought-provoking and clearly expressed, Games and Decisions: Introduction and Critical Survey is designed for the non-mathematician and requires no advanced mathematical training. It will be welcomed by economists concerned with economic theory, political scientists and sociologists dealing with conflict of interest, experimental psychologists studying decision making, management scientists, philosophers, statisticians, and a wide range of other decision-makers. It will likewise be indispensable for students in courses in the mathematical theory of games and linear programming.
Game theory shows that in order to coordinate its actions, a group of people must form "common knowledge." Each person wants to participate only if others also participate. Members must have knowledge of each other, knowledge of that knowledge, knowledge of the knowledge of that knowledge, and so on. Michael Chwe applies this insight, with striking erudition, to analyze a range of rituals across history and cultures. He shows that public ceremonies are powerful not simply because they transmit meaning from a central source to each audience member but because they let audience members know what other members know. For instance, people watching the Super Bowl know that many others are seeing precisely what they see and that those people know in turn that many others are also watching. This creates common knowledge, and advertisers selling products that depend on consensus are willing to pay large sums to gain access to it. Remarkably, a great variety of rituals and ceremonies, such as formal inaugurations, work in much the same way.
By using a rational-choice argument to explain diverse cultural practices, Chwe argues for a close reciprocal relationship between the perspectives of rationality and culture. He illustrates how game theory can be applied to an unexpectedly broad spectrum of problems, while showing in an admirably clear way what game theory might hold for scholars in the social sciences and humanities who are not yet acquainted with it.
In a new afterword, Chwe delves into new applications of common knowledge, both in the real world and in experiments, and considers how generating common knowledge has become easier in the digital age.
In A Cooperative Species, Samuel Bowles and Herbert Gintis--pioneers in the new experimental and evolutionary science of human behavior--show that the central issue is not why selfish people act generously, but instead how genetic and cultural evolution has produced a species in which substantial numbers make sacrifices to uphold ethical norms and to help even total strangers.
The authors describe how, for thousands of generations, cooperation with fellow group members has been essential to survival. Groups that created institutions to protect the civic-minded from exploitation by the selfish flourished and prevailed in conflicts with less cooperative groups. Key to this process was the evolution of social emotions such as shame and guilt, and our capacity to internalize social norms so that acting ethically became a personal goal rather than simply a prudent way to avoid punishment.
Using experimental, archaeological, genetic, and ethnographic data to calibrate models of the coevolution of genes and culture as well as prehistoric warfare and other forms of group competition, A Cooperative Species provides a compelling and novel account of how humans came to be moral and cooperative.
For those who slept through Stats 101, this book is a lifesaver. Wheelan strips away the arcane and technical details and focuses on the underlying intuition that drives statistical analysis. He clarifies key concepts such as inference, correlation, and regression analysis, reveals how biased or careless parties can manipulate or misrepresent data, and shows us how brilliant and creative researchers are exploiting the valuable data from natural experiments to tackle thorny questions.
And in Wheelan’s trademark style, there’s not a dull page in sight. You’ll encounter clever Schlitz Beer marketers leveraging basic probability, an International Sausage Festival illuminating the tenets of the central limit theorem, and a head-scratching choice from the famous game show Let’s Make a Deal—and you’ll come away with insights each time. With the wit, accessibility, and sheer fun that turned Naked Economics into a bestseller, Wheelan defies the odds yet again by bringing another essential, formerly unglamorous discipline to life.
Understand a game matrix, the prisoners’ dilemma, dominant and mixed strategies, zero-sum games, Pareto efficiency, the Nash equilibrium, and the power of asymmetric information.
Calculate payoffs and outcomes in games involving characters such as Jack and Jill, or Frodo and Gollum. Look at the effects of altruism and hatred on games, and see how games can change over time.
Explore examples looking at gang members, free riders, global governance, a long-term relationship, competing corporations, advertisers and their customers, along with familiar hawk-dove and chicken games.
See game players use every trick in the book to get what they want, with over 50 images to guide through the steps they use to play the game.
Game Theory is the ideal textbook for advanced undergraduate and beginning graduate students. Throughout, concepts and methods are explained using real-world examples backed by precise analytic material. The book features many important applications to economics and political science, as well as numerous exercises that focus on how to formalize informal situations and then analyze them.
Introduces the core ideas and applications of game theory
Covers static and dynamic games, with complete and incomplete information
Features a variety of examples, applications, and exercises
Topics include repeated games, bargaining, auctions, signaling, reputation, and information transmission
Ideal for advanced undergraduate and beginning graduate students
Complete solutions available to teachers and selected solutions available to students
In Predictable and Avoidable, Dr Pezzuto offers business school students; academics; and industry experts in the fields of finance, risk management, audit, corporate governance, economics, and regulation, a truly independent and unbiased analysis of the financial crises starting in 2007 and one of the first fully considered expositions of the financial, governance and regulatory reforms needed for the future.
Augmented with personal interviews involving selected global thought leaders and industry experts, the author's narrative focuses on the technical issues that led to the global crisis, but also addresses the human, cultural, and ethical aspects of the events from both sociological and managerial perspectives. The book exposes the root causes and contributes significantly to the debate about the change needed in the banking and finance industries and to supervisory frameworks and regulatory mechanisms.
This analysis enables readers to understand that the crisis we have seen was predictable and should have been avoidable, and that a recurrence can be avoided, if lessons are learned and the right action taken.
First edition published by Prentice-Hall in 2001- ISBN 0130174467.
The second edition includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor.
"This book does admirably what it sets out to do - provide a bridge between MBA-level finance texts and PhD-level texts....
many books claim to require little prior mathematical training, but this one actually does so.
This book may be a good one for Ph.D students outside finance who need some basic training in financial theory or for those looking for a more user-friendly introduction to advanced theory.
The exercises are very good."
--Ian Gow, Student, Graduate School of Business, Stanford UniversityCompletely updated edition of classic textbook that fills a gap between MBA level texts and PHD level textsFocuses on clear explanations of key concepts and requires limited mathematical prerequisitesUpdates includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor
This complete summary of the ideas from Avinash Dixit and Barry Nalebuff's book "The Art of Strategy" shows how game theory can be relevant and applicable to contexts other than academia, as it aids strategic thinking. In their book, the authors explain the basic rules of game theory, breaking down each section into easy-to-understand segments with real-life examples. This summary is a clear guide to using game theory in all areas of your life to help you make strategic decisions.
Added-value of this summary:
• Save time
• Understand key concepts
• Expand your knowledge
To learn more, read "The Art of Strategy" and become an expert at using game theory to create the best strategies.
The Essentials For Dummies Series
Dummies is proud to present our new series, The Essentials For Dummies. Now students who are prepping for exams, preparing to study new material, or who just need a refresher can have a concise, easy-to-understand review guide that covers an entire course by concentrating solely on the most important concepts. From algebra and chemistry to grammar and Spanish, our expert authors focus on the skills students most need to succeed in a subject.
This complete summary of the ideas from Steven Levitt and Stephen Dubner's book "Think Like A Freak" states how economic theories can also be applied to problems in society. This is the concept of Freakonomics. Freakonomics basically means thinking for yourself and acknowledging the facts. Learning to ‘think like a freak’ means you can tackle the difficult problems that other people ignore. According to Levitt and Dubner, there are eight steps to ‘thinking like a freak’, such as putting away your moral compass, admitting what you don't know and thinking like a child. By applying these principles to your own thinking, you will be ready to tackle bigger problems strategically.
Added-value of this summary:
• Save time
• Learn how to ‘think like a freak’
• Tackle the really difficult problems
To learn more, read “Think Like A Freak” and follow the eight steps to start solving real problems!
Game Theory means rigorous strategic thinking. It is based on the idea that everyone acts competitively and in his own best interest. With the help of mathematical models, it is possible to anticipate the actions of others in nearly all life's enterprises. This book includes down-to-earth examples and solutions, as well as charts and illustrations designed to help teach the concept. In The Complete Idiot's Guide® to Game Theory, Dr. Edward C. Rosenthal makes it easy to understand game theory with insights into:
? The history of the disciple made popular by John Nash, the mathematician dramatized in the film A Beautiful Mind
? The role of social behavior and psychology in this amazing discipline
? How important game theory has become in our society and why
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Former columnist for Scientific American's "Mathematical Games" section, Ian Stewart is a professor at the University of Warwick and the author of Another Fine Math You've Got Me Into... and a score of other books of mathematical recreations, popular science, and science fiction. In this collection of pun-studded fables, he once again exercises his immense talent for transforming complicated concepts of modern mathematics into stimulating, accessible fun. Stewart introduces the different kinds of infinity, explains how to build your own virus, explores the brighter ideas of Pascal and Fermat, and even offers a dozen different puzzles for the twelve days of Christmas.
The assumption that metrics comparing us to an average—like GPAs, personality test results, and performance review ratings—reveal something meaningful about our potential is so ingrained in our consciousness that we don’t even question it. That assumption, says Harvard’s Todd Rose, is spectacularly—and scientifically—wrong.
In The End of Average, Rose, a rising star in the new field of the science of the individual shows that no one is average. Not you. Not your kids. Not your employees. This isn’t hollow sloganeering—it’s a mathematical fact with enormous practical consequences. But while we know people learn and develop in distinctive ways, these unique patterns of behaviors are lost in our schools and businesses which have been designed around the mythical “average person.” This average-size-fits-all model ignores our differences and fails at recognizing talent. It’s time to change it.
Weaving science, history, and his personal experiences as a high school dropout, Rose offers a powerful alternative to understanding individuals through averages: the three principles of individuality. The jaggedness principle (talent is always jagged), the context principle (traits are a myth), and the pathways principle (we all walk the road less traveled) help us understand our true uniqueness—and that of others—and how to take full advantage of individuality to gain an edge in life.
Read this powerful manifesto in the ranks of Drive, Quiet, and Mindset—and you won’t see averages or talent in the same way again.
The fun and easy way to get down to business with statistics
Stymied by statistics? No fear? this friendly guide offers clear, practical explanations of statistical ideas, techniques, formulas, and calculations, with lots of examples that show you how these concepts apply to your everyday life.
Statistics For Dummies shows you how to interpret and critique graphs and charts, determine the odds with probability, guesstimate with confidence using confidence intervals, set up and carry out a hypothesis test, compute statistical formulas, and more.Tracks to a typical first semester statistics course Updated examples resonate with today's students Explanations mirror teaching methods and classroom protocol
Packed with practical advice and real-world problems, Statistics For Dummies gives you everything you need to analyze and interpret data for improved classroom or on-the-job performance.
Two of the authors co-wrote The Elements of Statistical Learning (Hastie, Tibshirani and Friedman, 2nd edition 2009), a popular reference book for statistics and machine learning researchers. An Introduction to Statistical Learning covers many of the same topics, but at a level accessible to a much broader audience. This book is targeted at statisticians and non-statisticians alike who wish to use cutting-edge statistical learning techniques to analyze their data. The text assumes only a previous course in linear regression and no knowledge of matrix algebra.