Charlie teaches his class “Math for Non-Mathematicians” the Monty Hall problem, where a game show contestant must decide whether to change their minds if given the option of 3 cards.
Charlie explains the Ultimatum Game to Nikki and why some people are willing to hurt themselves for revenge. When Nikki gives him $30 out of $100, she’s showing that concerns for equity lead people to act differently than what’s “optimal.”
Charlie explains the effects of the Prisoner’s Dilemma and how they can “trick” the prisoners into confessing the crime. It’s a little different than the traditional set-up, but still fun to watch.