Summary: We’re big fans of Bruce Bueno de Mesquita, the author of The Predictioneer’s Game, a book about using game theory to get what you want in day-to-day life.
Game theory is a method of studying strategic decision making, that is mainly used in economics, political science, and psychology, as well as logic and biology.
People compete, and they always do what they think is in their own best interest. The idea behind this method is to let local dealers compete with one another on price in an open marketplace.
The book is intended to help people take decision when it comes to predict and engineer the future. Look at this short video explaining how to use these ideas to buy a new car.
Here are the basics of Mesquita’s method:
So let me lay out how to buy a car. It’s very easy. Figure out exactly which car you want to buy, make, color if it matters to you, options and so forth. Then do not go to a dealership. Let your fingers do the walking. Telephone all of the dealers who sell the vehicle you’re interested in who are, say, within a 50 mile radius, a 25 mile radius, 75, however far you’re willing to go.
To each of them make the same statement: “Hi, my name is so and so. I plan to buy such and such a car today at 5pm. I’m going to buy it from the dealer who gives me the best price. What is your best price?”
That is an awesome strategy and well worth utilizing. This technique was already mentioned in this video below. It’s a about how to buy a new car without getting screwed. The idea is the same as Mesquita’s.
I wonder if this could work for used cars? We are planning to buy a new to us car later this year or early next year but there are so many variables with used cars (mileage, condition, model etc) that it would be hard to employ a tactic like this.
