Behavior Economics and Game Theory (Fitts 2021)

Email: mfitts@sas.edu.sg

What will you find on these pages?

This calendar contains information about homework, assignments that are due, and class resources (videos, slideshows, and related readings and podcasts). It also has information about what we'll be doing each day. Click here to see the syllabus.

• • Formative Assessments: 20%

  • Unit Tests (Summative): 60%

  • Final Project Discussion (Summative): 20%

UNIT ONE (GAME THEORY): In what contexts do we behave rationally?

ENRICHMENT PROJECT

Each quarter there will be an enrichment project that students may choose to do optionally. It is not required work. Click here to see the explanation and timeline for the Unit One Enrichment Project.

An Introduction to Game Theory and Vicarious Thinking (Ugli Oranges)

January 5:

• Housekeeping: Intro Mr. Fitts, You, Seating Chart, class expectations, Name our Class!

• Activity #1: Politics and Game theory, remember before Trump was president? Read this.

• Activity #2

• Activity #3: The Ugli Orange Game. Learn to negotiate. Roles

Welcome back, Schmoney Machine Go Brrrr!

The Prisoner's Dilemma

January 7:

1. Game theory or Behavioural Economics Book Club:

   • Choose a book for the semester. You will participate in weekly book discussions (formative) and you will write a book review commentary of 750 words when you finish your book (summative).

   • Some book options include but are not limited to

     • Predictably Irrational, The Paradox of Choice, Nudge, Thinking Fast and Slow (PDF), Freakonomics, Super Freakonomics, Black Swan, Fooled by Randomness, and many more.

     • If you want to choose a book outside of this list, notify me and I can approve it.

     • I have access to most of these but not all. If more copies are needed, we may need to get digital copies or it may become a personal purchase.

2. Focus Question (What is the prisoner's dilemma?): Watch this video on the Science of Game Theory. (10 mins)

1. If you finish the video before other students, read pages 12-13 of this article on the prisoner's dilemma.

2. Our Online Textbook is Core Econ. Read Chapter 4.1 Social Interactions: Game Theory. The goal is mostly no homework for this class except for projects and reading your chosen book. That's why I'll give you time in class to read.

3. Then read this article on how the prisoner's dilemma relates to the environment and this one on how international trade can be a strategic game like the prisoner's dilemma.

4. Focus Question (How could I game the prisoner's dilemma?): With a groups of 2-4, create your own card game in which the players are forced to encounter a prisoner's dilemma in some form.

5. Explain how to play your game here (template located in your Drop Folder). Then copy the link to your explanation document and YouTube to our Game Theory Work doc (we'll use this doc for all of Unit 1).

January 11: The Prisoner's Dilemma (Evidence of learning)

1. Time to read your chosen Econ books. PDF of Thinking Fast and Slow. First discussion is Wed, and will occur every second class period of the week (usually Wed or Thur). Create a reading plan with your Book Club group. Use the Shapes protocol for note taking. You will have 8 (formative) discussions with your book club group followed by 1 large class (summative) discussion where the teacher will give you a prompt and one additional source for reading. At the end of the summative discussion, you will write a book review commentary that is between 1-3 pages (summative).

2. AP Economics PPT notes on Game Theory

1. Play your card games: Make any modifications necessary to your explanation from last class.

2. Make a video in which you play the game, demonstrating how the prisoner's dilemma is represented in it. In an audio voiceover on the video, do all of the following:

   • Identify the name of the game.

   • Explain the rules.

   • Explain how it is related to a prisoner’s dilemma.

   • Reflect on whether your idea worked. Is your game a prisoner’s dilemma or do players encounter one during the game? YOU MUST REFERENCE THE EVENTS FROM THE VIDEO.

   • Copy a link of the video in the appropriate place in your original document and the Game Theory Work doc (from last class).

3. Click here to see the rubric for this assignment.

January 13: The Prisoner's Dilemma (Formative Guided Inquiry)

1. PPT notes (cont'd)

2. Then we'll watch Will Aime Prison's Dilemma (7 mins)

1. Card Game Prisoner's Dilemma: Tweak your card game that you started the other day. When you feel ready, have another group play your card game. Make any changes necessary. Explain how to play your game here (template located in your Drop Folder). Then copy the link to your explanation document and YouTube to our Game Theory Work doc (we'll use this doc for all of Unit 1). Explanation and Video Due Monday, 18 January. (See example here.)

2. Research: Do some research so that you can answer the following questions.

   • Focus Question: What is one real life example of a prisoner's dilemma? How does it represent a prisoner's dilemma?

   • Focus Question: What is one example of a prisoner's dilemma from literature or film? How does it represent a prisoner's dilemma?

   • Essential Question (Do we behave rationally?): Explain how your two examples help us to answer the essential question.

3. Discussion: Participate in a discussion (posted in Schoology). You should make three posts. Click here to see the rubric for this assignment.

   • First post: Answer the questions above (one paragraph for each bullet point). Use quotes from credible sources to support your idea regarding the real life example and at least one quote from the work of literature or the film to support that argument. Post a link to your prisoners dilemma card game video at the end of this post.

   • Second post and third posts: Reply to two other students' posts, agreeing with one and disagreeing with the other.

The Chicken Game

January 18:

What is the chicken game and how could I game it?

Economist video, 30 secs

Six degrees of Kevin Bacon?

1. Prisoner's Dilemma Card Game and Video due. Add link here of your video and explanation.

2. Focus Question: (What is it?): I will explain the chicken game on the board. For those of you who want a more mathematical approach, watch this video (Dr. William Spaniel).

• • 1. Dr. William Spaniel is assistant professor at the University of Pittsburgh's Department of Political Science. Previously, he was a Stanton Nuclear Security Postdoctoral Fellow at Stanford University's Center for International Security and Cooperation. He holds a PhD in political science from the University of Rochester

1. Read: Core Econ chapter 4.2, "Equilibrium and the Invisible Hand". 10 mins

2. Focus Question (How could I game it?): Create your own card game in which the players are forced to encounter a game of chicken in some form.

3. Demonstrate Understanding

   • Explain how to play your game on your original game document. You linked it here.

   • Play your card games: Make any modifications necessary.

   • Make a video in which you play the game, demonstrating how the chicken game is represented in it. In an audio voiceover on the video, do all of the following:

     • Identify the name of the game.

     • Explain the rules.

     • Explain how it is related to the chicken game.

     • Reflect on whether your idea worked. Is your game a chicken game or do players encounter one during the game? YOU MUST REFERENCE THE EVENTS FROM THE VIDEO.

     • Copy a link of the video in the appropriate place in your original game document.

4. Click here to see the rubric for this assignment. Due Next Class (formative).

5. Next class, Book Club.

The Chicken Game (part 2 - Politics and Discussion)

January 20: Chicken game discussion

1. Book Club #2 of 8 (formative, not graded)

2. Record your Card Game: Tweak your card game and then record your explanation and video.

3. Research: Do some research so that you can answer the following questions.

   • Focus Question: What is one real life example of a chicken game in politics or business? How does it represent a chicken game?

     • For example, read this article on Trump and Iran published by the Library of Economics and Liberty in June 2019.

• • • • And this Tarantino movie clip (2 mins, must be 18 or watch with parent supervision!)

1. Essential Discussion Question: Do we behave rationally? Explain how your two examples (politics, film) help us to answer the essential discussion question.

   • Digital Discussion: Participate in a discussion (posted on Parlay, join here). You should make three posts. Click here to see the rubric for this assignment.

   • First post: Answer the questions above (one paragraph for each bullet point). Use quotes from credible sources to support your idea regarding the real life example and at least one quote from the work of literature or the film to support that argument. Also, post a link to your chicken game card game video at the end of this post.

   • Second post and third posts: Reply to two other students' posts, agreeing with one and disagreeing with the other. Positive comments only about Chicken Card Game videos.

Stag Hunt

January 22:

1. Online Chicken Game discussion on Parlay (10-15 mins)

   1. Stag Hunt -- Watch these videos to learn about the stag hunt. (4 mins)

      1. Stag Hunt (4 mins)

• • • 1. Hunting Season

• • 1. Lying in the Stag Hun (3mins)

1. Exploring Stag Hunt Academic articles: Cornell University blog (5 mins read), UC Irvine Stag Hunt (30 min read).

2. Focus Question (How could I game it?): Create your own card game in which the players are forced to encounter a version of the stag hunt.

3. Demonstrate Understanding

   • Explain how to play your game on your original game document. You linked it here.

   • Play your card games: Make any modifications necessary.

   • Make a video in which you play the game, demonstrating how the stag hunt is represented in it. In an audio voiceover on the video, do all of the following:

     • Identify the name of the game.

     • Explain the rules.

     • Explain how it is related to the stag hunt.

     • Reflect on whether your idea worked. Is your game a stag hunt or do players encounter one during the game? YOU MUST REFERENCE THE EVENTS FROM THE VIDEO.

     • Copy a link of the video in the appropriate place in your original game document.

4. Click here to see the rubric for this assignment.

Stag Hunt Discussion

January 25: No class -- Teacher in-service meetings

January 27: Stag Hunt Parlay Discussion

1. Hook: How should you choose Interim? University, number 1 college?

• 1. For how much do you think I could auction a $50 bill?

  2. Can you have more than half of the people better than average? Gladiators, Pirates, and Games of Trust by Haim Shapira

1. Post Chicken Game and Stag Hunt Card Games and videos: You have time to finish these postings. I've started grading the Prisoner's Dilemma. Great Stuff! These are formative grades and worth 20% of your final grade. Thanks!

2. Research: Do some research so that you can answer the following questions.

   • Focus Question: What is one real life example of the stag hunt? How does it represent the stag hunt?

   • Focus Question: What is one example of the stag hunt from literature or film? How does it represent the stag hunt?

   • Essential Question (Do we behave rationally?): Explain how your two examples help us to answer the essential question.

3. Discussion: Participate in a discussion (posted in Parlay). You should make three posts. Click here to see the rubric for this assignment.

   • First post: Answer the questions above (one paragraph for each bullet point). Use quotes from credible sources to support your idea regarding the real life example and at least one quote from the work of literature or the film to support that argument. Post a link to your stag hunt card game video at the end of this post.

   • Second post and third posts: Reply to two other students' posts, agreeing with one and disagreeing with the other.

Matching Pennies

January 29: Matching Pennies Card Game

February 2: Matching Pennies (Formative Guided Inquiry)

1. Book Club #3 of 8

2. Matching Pennies --> Practice: Find a partner, take out 2 coins, and use the following payoff matrix while you play matching pennies. You can choose heads, tails, or you can flip your coin. Try to win the most points.

1. Focus Question: (What is it?): Watch this video to learn about a new game, Matching Pennies.

1. Watch this one if you want to learn how to use mixed strategy algorithms to solve these types of games. (a bit mathy)

1. Focus Question (How could I game it?): Create your own card game in which the players are forced to encounter a version of matching pennies. Use either the equal payoff matrix, shown above, or the weighted payoff matrix shown in the Mixed Nash Algorithm video.

2. Demonstrate Understanding

   • Explain how to play your game on your original game document. You linked it here.

   • Play your card games: Make any modifications necessary.

   • Make a video in which you play the game, demonstrating how matching pennies is represented in it. In an audio voiceover on the video, do all of the following:

     • Identify the name of the game.

     • Explain the rules.

     • Explain how it is related to matching pennies.

     • Reflect on whether your idea worked. Is your game a matching pennies or do players encounter one during the game? YOU MUST REFERENCE THE EVENTS FROM THE VIDEO.

     • Copy a link of the video in the appropriate place in your original game document.

3. Click here to see the rubric for this assignment.

February 2: Matching Pennies (Formative Guided Inquiry)

1. Research: Do some research so that you can answer the following questions.

   • Focus Question: What is one real life example of matching pennies? How does it represent matching pennies?

   • Focus Question: What is one example of the matching pennies from literature or film? How does it represent matching pennies?

   • Essential Question (Do we behave rationally?): Explain how your two examples help us to answer the essential question.

2. Discussion: Participate in a discussion (posted in Schoology). You should make three posts. Click here to see the rubric for this assignment.

   • First post: Answer the questions above (one paragraph for each bullet point). Use quotes from credible sources to support your idea regarding the real life example and at least one quote from the work of literature or the film to support that argument. Post a link to your matching pennies card game video at the end of this post.

   • Second post and third posts: Reply to two other students' posts, agreeing with one and disagreeing with the other.

Battle of the Sexes

February 4: Battle of the Sexes

1. Focus Question: (What is it?): Watch this video to learn about a new game, Battle of the Sexes.

2. Focus Question (How could I game it?): Create your own card game in which the players are forced to encounter a version of battle of the sexes.

3. Demonstrate Understanding

   • Explain how to play your game on your original game document. You linked it here.

   • Play your card games: Make any modifications necessary.

   • Make a video in which you play the game, demonstrating how battle of the sexes is represented in it. In an audio voiceover on the video, do all of the following:

     • Identify the name of the game.

     • Explain the rules.

     • Explain how it is related to battle of the sexes.

     • Reflect on whether your idea worked. Is your game an example of battle of the sexes or do players encounter a similar problem during the game? YOU MUST REFERENCE THE EVENTS FROM THE VIDEO.

     • Copy a link of the video in the appropriate place in your original game document.

4. Click here to see the rubric for this assignment.

February 8: Battle of the Sexes (Formative Guided Inquiry)

1. Research: Do some research so that you can answer the following questions.

   • Focus Question: What is one real life example of battle of the sexes? How does it represent battle of the sexes?

   • Focus Question: What is one example of the battle of the sexes from literature or film? How does it represent battle of the sexes?

   • Essential Question (Do we behave rationally?): Explain how your two examples help us to answer the essential question.

2. Discussion: Participate in a discussion (posted in Schoology). You should make three posts. Click here to see the rubric for this assignment.

   • First post: Answer the questions above (one paragraph for each bullet point). Use quotes from credible sources to support your idea regarding the real life example and at least one quote from the work of literature or the film to support that argument. Post a link to your battle of the sexes card game video at the end of this post.

   • Second post and third posts: Reply to two other students' posts, agreeing with one and disagreeing with the other.

Unit One Summative Assessment

Part 1

February 10: Econ Book Club #5 and Prepare for the Unit One Summative Assessment

February 12-15: Chinese New Year (no school)

February 16: Summative Prep

February 18: Summative Test

February 22-26: Interim (no classes)

Part 2

March 2: Summative game. I will use this rubric to assess your game.

• Write your game's story.

• Write the rules of your game and plan the materials you need.

March 4: Bring materials to class and make your game.

March 8: Play games, make any changes necessary, and make your game video.

UNIT TWO (BEHAVIORAL ECONOMICS): In what contexts do we behave irrationally?

THIS VIDEO IS A GOOD INTRODUCTION TO THE KINDS OF IDEAS YOU WILL STUDY THIS UNIT.

• Here's a good explanation of how one cognitive bias (thinking in relative rather than nominal values) can cause us to make irrational choices.

• And here's another related to policing and "implicit bias." It relates to the first concept we will discuss, thinking automatically.

• Finallly, watch this video about procrastination to get a sense of one of life's most annoying cognitive traps, present bias.

March 10: How does thinking automatically ("thinking fast") cause irrational behavior?

1. Econ Book Club: #7 of 8

2. Required: Watch the Ted Talk by Ariely in #1. Read the article and listen to the embedded Ted Talk in #2. Read the linked section of the 2015 World Development Report in #3. Take note of any ideas/quotes from these texts that help you to form a thesis about the question above.

   1. Daniel Ariely on Irrational Behavior

• 1. Atlantic article and Ted Talk (Daniel Kahneman)

  2. 2015 World Development Report (Chapter 1)

• Optional: Listen to the interview with Daniel Kahneman in #1 and the interview with Jim Yong Kim in #2. Take note of any ideas/quotes from these texts that help you to form a thesis about the question above.

  1. Interview with Daniel Kahneman

  2. Freakonomics podcast with Jim Yong Kim on the 2015 World Development Report.

     • Click this link to read the whole report: Mind, Society, and Behavior

     • Click here to read an overview/summary of the report.

March 12 (Formative Guided Inquiry): How does thinking socially cause irrational behavior?

1. Read: 2015 World Development Report (Chapter 2)

2. Class discussion: Rubric

March 16 (Formative Guided Inquiry): How does thinking with mental models explain irrational behavior?

1. Read: 2015 World Development Report (Chapter 3)

2. Class discussion

The Book Drop Experiment (Formative Shared Inquiry): Rubric

March 18: The book drop experiment (Dr. Devens)

1. Econ Book Club #8: Summative discussion, recorded. Rubric

2. Dr. Devens will talk about helping behavior. Read this related article.

3. Dr. Devens will talk about the Barry's Schwarz's Paradox of Choice in his lesson. Watch the TedTalk below to learn more if this idea is interesting to you.

• THE ASSIGNMENT

  • • Dr. Devens will be explaining the book drop experiment to you. You will do it yourself. Click here for an explanation of what you have to do.

    • Use this document to help you start your experiment and write your report.

March 22-26: Spring Break, no classes

March 29: Experiment

March 31: Experiment/write report (Click here to see a student model of this type of work.)

April 2: Good Friday, no class

April 5: Write report

April 7: Presentations: Click here to see the presentation rubric. Written report due to turnitin.com. Watch the embedded video below to see an exemplary presentation.

Cognitive Trap #1 (Summative Shared Inquiry): Rubric

April 9: How do cognitive biases cause irrational behavior?

• Click this link and begin to read about the various cognitive biases listed on the page.

• Experiment

  1. Choose one of the cognitive biases that interests you.

  2. Brainstorm ways in your life and in those of people you know that this cognitive bias causes bad decisions or irrational behavior.

  3. Find a study/experiment that has been done to test whether this cognitive trap is real, whether it causes irrational behavior. YOUR TASK IS TO REPLICATE THE STUDY/EXPERIMENT.

  4. Click here to see a student model of this type of work.

April 13: Write report

April 15: Write report

April 19: Presentations: Click here to see the presentation rubric. Written report due to turnitin.com. Watch this video to see an exemplary presentation for this project.

Cognitive Trap #2 (Summative Shared Inquiry): Rubric

April 21: How do cognitive biases cause irrational behavior?

Click this link to revisit the various cognitive biases you read about at the start of the last project.

Experiment

• 1. Choose a new cognitive bias that interests you.

  2. Brainstorm ways in your life and in those of people you know that this cognitive bias causes bad decisions or irrational behavior.

  3. Using what you learned from the book drop experiment, DESIGN AN EXPERIMENT OF YOUR OWN to test whether this cognitive trap is the cause of the irrational decision making.

  4. Click here to see a student model of this type of work.

April 23: Write report

April 27: Presentations: Click here to see the presentation rubric. Written report due to turnitin.com.

FINAL PROJECT (Shared Inquiry)

Enrichment Project: The Unit 2 Enrichment Project is to develop an experiment to test the idea you develop in your final project. I will explain in more detail in class.

April 29:

1. Listen to this podcast about SOCIAL NUDGES (23 minutes). As you have learned, we do not always behave rationally. Nobel Prize winning economist Richard Thaler suggests that irrational behavior can be partially addressed through employing social nudges like the ones discussed in the podcast.

2. Work on final project (Intention-action divide, choice-architecture, and nudges). You may be able to find some ideas from the webpage of the Behavioural Insights Team.

April 30: Parent Teacher Conferences, no classes

May 7: Work on final project (Intention-action divide, choice-architecture, and nudges).

May 11: Work on final project.

May 13: Hari Raya Puasa, no classes

May 14: Rough draft (Sections 1 and 2 only) finished and shared in the drop by the beginning of the period.

• Peer edit and revision

• Work on final project.

May 18: Work on final project. Final projects and presentations due by the end of the exam period.

May 20: Final projects and presentations due by the end of the exam period (9:30 AM).