The best game theory books 📚

This is the book that brought game theory to life. Eschewing dry mathematical theorems, and conducting rigorous logical analysis through rich examples of strategic use of threats, promises, and brinkmanship in real life, Schelling opened up a whole world of practical applications of the theory. My own thinking and writing about game theory owes a huge debt to Schelling. You should also read his “Arms and Influence,” “Micromotives and Macrobehavior,” and “Choice and Consequence.”

Levitt is a pioneer of, and among the most successful users of, techniques of data analysis to identify causes and effects in economics. This book, based on work that won him the Clark Medal, the economics profession’s premier prize for young researchers, gives us surprising, quirky, and delightful insights into the workings of many economic, political, and social phenomena.

The right thinks markets are the magic solution to all problems; the left thinks they only let the rich exploit the poor. As always, the truth is more subtle. With rich details of how actual markets operate around the world, well grounded in modern economic theory of information and incentives, and written in a beautifully simple and engaging style, McMillan tells it like it is and explains why. If you have time to read only one book on economics, make it this one.