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.
Freakonomics: Potty Training
Levitt’s incentive scheme for potty training his daughter, Amanda, backfires.
Freakonomics: Cheating Teachers
This is a great clip to introduce the concept of unintended consequences. While not all students are familiar with the struggles of potty training, nearly all of them can relate to the incentives of cheating on a standardized test.
Along Came Polly: Stabbing the Pillows
Ben Stiller invites a woman over to his apartment and she’s blown away by the number of pillows on his bed. She calls him out for how much time he’s wasting, but he doesn’t initially see the point. After some aggressive reflection, he realizes how much time he actually spends fluffing pillows on his bed and what he could have been doing instead.
ABC News: Mission Impossible: Lost in New York
12 strangers, divided into pairs must find the other person in New York City with only $100 and no idea who they’re looking for. This simultaneous game gives student a peek into a different type of game compared to what is traditionally taught in a principles course. The idea of common perceptions is that even though we all come from different backgrounds, we tend to focus on the same landmarks when trying to make decisions.
Read the full story from ABC News