Reading · Summer 2022 Reading from MIT

Culture, humanities & social science

Hidden Games: The Surprising Power of Game Theory to Explain Irrational Human Behavior

By Erez Yoeli, research scientist in the MIT Sloan School of Management, and Moshe Hoffman

Basic Books · 2022

We like to think of ourselves as rational. But as behavioral economics shows, most behavior doesn't seem rational at all - which, unfortunately, casts doubt on game theory's real-world credibility. In "Hidden Games," Yoeli and Hoffman find a surprising middle ground between the hyperrationality of classical economics and the hyper-irrationality of behavioral economics. They call it "hidden games."

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