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handoflixue comments on SotW: Check Consequentialism - Less Wrong
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Doesn't that rely on everyone eating candy? One person who doesn't eat candy and therefore isn't invested in the outcome could wreck that.
Also: theoretically, a student could win hundreds of pieces of candy? I'm sure the parents were very happy about that.
Anyone can ruin it deliberately, true - it works best with a cooperative group, not a competitive one. Modifying it for a competitive group would definitely remove it from the real of "useful introductory ideas", but would probably still be a useful exercise for more advanced classes.
Candy is also concrete and engaging - most people don't respond as enthusiastically to raffle tickets or $0.25. As part of a larger set of challenges, using play money with some sort of modest exchange of play money -> small prizes at the end of the session might work.