So you’re standing at the edge of a cliff, chained by the ankle to someone else. You’ll be released, and one of you will get a large prize, as soon as the other gives in. How do you persuade the other ...

I n the epilogue of their blockbuster book Mostly Harmless Econometrics (2009), Josh Angrist and Steve Pischke write, “If applied econometrics were easy, theorists would do it.” As academic jokes go, ...

Discover how the Centipede Game illustrates conflict between self-interest and mutual benefit, as well as why real-world ...

Explore how backward induction helps solve game theory problems by working from the end backward to determine optimal actions ...

Human behavior drives the evolution of biological organisms in ways that can profoundly adversely impact human welfare. Understanding people's incentives when they do so is essential to identify ...

Playing with Reality: How Games Shape Our World. By Kelly Clancy. Riverhead Books; 368 pages; $30. Allen Lane; £25 In 1824 Prince Wilhelm of Prussia asked for a demonstration of an elaborate game he ...