This animated clip illustrates the Hotelling Model well (even though they don’t mention it), but can also be used to introduce the idea of sequential moves.
BusinessInsider — Buying People’s Powerball Ticket
Business Insider wanted to test just how strong the endowment effect (regret avoidance) is when it comes to Powerball tickets for the large jackpot this past week. Overall, people seemed really inclined to want to keep their numbers, even when offered the twice what they paid for the tickets.
The Princess Bride: Battle of Wits
The Battle of Wits scene may be one of the best game theory examples that students have scene before. It’s a great opportunity to introduce the concept of full information and knowing what the other one knows.
Golden Balls: Coordination
In the great British game show, Golden Balls, contestants must decide whether to cooperate with each other or be devious. The dramatic outcome of the game (replicated here) is that one will steal and the other will be honest. This variant of the game has a unique twist to ensure cooperation.
Golden Balls: Split or Steal
In one of the greatest game theory game shows produced, contestants play a simultaneous-move game where they must decide whether to split or steal money from each other.
A Beautiful Mind: Ignoring the Blonde
The classic scene from A Beautiful Mind when Nash (Russell Crowe) and his friends are discussing governing dynamics. Nash’s realization is not that of a Nash Equilibrium, but rather the classic view of Adam Smith (everyone doing what’s best for themselves) is harmful compared to if they just work together for the common good. It can be a bit confusing since the Nash Equilibrium is not that people should work together for the great good, but this is still a good introduction to a lesson game theory because it helps introduce why it might be harmful for everyone to only do what’s in their own best interest.
Blackish: Gift Giving
The Johnson’s Christmas has changed a bit, but it looks like the children still don’t appreciate the gifts they were given. Junior perfectly demonstrates the inefficiency of gift giving by noting that his parents took money he could use anywhere and turned it into money he could only use at one store.
Parks & Recreation: Diminishing Returns of Shrimp
This great, short clip comes from one of my principle’s students, Caitlin, this year.
While at an engagement party for Leslie and Ben, Chris starts to experience extreme mood swings and sadness because he’s lonely. Anne tries to cheer him up by bringing him a platter of shrimp. Chris takes a bite of the shrimp and exclaims “That’s amazing” then after taking another bite he says “This one’s not as good.”
Vox: Why Are Weddings So Expensive
A great look from Vox on the asymmetric information involved in the wedding industry.
Friends: They Don’t Know That We Know
When teaching game theory, we inevitably spill into the notion of complete information with they “they know we know” and “we know that they know we know.” Now you can have Friends do it for you: