Here is the course description:
"An examination of how rational people cooperate and compete. Game theory explores situations in which everyone's actions affect everyone else, and everyone knows this and takes it into account when determining their own actions. Business, military and dating strategies will be examined."
When teaching economics I strive to relate all the material to my students' lives and concerns, rather than the type of abstract mathematical concepts that often capture economists' interests.
Subscribe to RSS Feed
= f037147d6e6c911a85753b9abdedda8d)
Precommitment is an interesting aspect of game theory that ties in well with lukeprog's how to beat procrastination.
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.