Strategy & game theory
Thinking when the other side is thinking too — equilibria, incentives and moves ahead.
Strategy is decision-making against an opponent who is also deciding. Game theory formalises it; the prisoner’s dilemma shows why rational players betray each other; Nash equilibria and Schelling points reveal where they settle; the Red Queen effect explains why running hard just keeps you in place. This is how to reason two moves deep.
Key ideas here: Game theory, Nash equilibrium, Prisoner's dilemma, Schelling point, Zero-sum vs positive-sum — and 5 more below.
Mental models
Game theory
Game theory is the study of strategic decisions, where your best move depends on what others choose and theirs depends on you. It models situations as…
Nash equilibrium
A Nash equilibrium is a state in a game where no player can do better by changing their strategy alone, given what everyone else is doing. It’s a…
Prisoner's dilemma
The prisoner's dilemma is a game where two players each do better by betraying the other, so both betray and both end up worse than if they had…
Schelling point
A Schelling point is the choice people converge on when they must coordinate without communicating — the option that feels natural, obvious, or…
Zero-sum vs positive-sum
A zero-sum game is one where one person’s gain is another’s exact loss — the pie is fixed. A positive-sum game is one where exchange and cooperation…
Tragedy of the commons
The tragedy of the commons is when individuals, each acting in their own rational self-interest, deplete a shared resource that everyone needs —…
Red Queen effect
The Red Queen effect is the need to keep improving just to maintain your position, because competitors and the environment are improving too. Like the…
The OODA loop
The OODA loop is a decision cycle — Observe, Orient, Decide, Act — repeated continuously. In a contest, whoever runs the loop faster and orients more…
Incentives
Incentives are the rewards and punishments that drive behaviour. To predict what people will do, look not at what they say or intend but at what they…
Barbell strategy
The barbell strategy is combining two extremes while avoiding the middle: pairing a very safe core with a small allocation of high-risk, high-upside…
Related topics
The books behind better thinking
Listen to any of these free. Start a free Audible trial and get your first audiobook on the house.
Prefer to read? The canonical picks:
- Thinking, Fast and Slow — Daniel Kahneman
- The Art of Thinking Clearly — Rolf Dobelli
- The Great Mental Models, Volume 1 — Shane Parrish
- Poor Charlie’s Almanack — Charlie Munger
- Super Thinking — Gabriel Weinberg & Lauren McCann
- Seeking Wisdom — Peter Bevelin
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Editorial synthesis © ReadGlobe. Each idea links to a full reference page with sources.