Comment on What rationality material should I teach in my game theory course

Mon, 20 Jan 2014 02:12:15 GMT

Yep. The most common model that yields a rational agent who will choose to restrict zir own future actions is beta-delta discounting, or time inconsistent preferences. I've had problem sets with such questions, usually involving a student procrastinating on an assignment; I don't think I can copy them, but let me know if you want me to sketch out how such a problem might look.

Actually, maybe the most instrumental-rationality-enhancing topics to cover that have legitimate game theoretic aspects are in behavioral economics. Perhaps you could construct examples where you contrast the behavior of an agent who interprets probabilities in a funny way, as in Prospect Theory, with an agent who obeys the vNM axioms.

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