Economics Classroom Experiments/Introductory Strategy
Experiments for an Introductory Course in Strategy
editThis is a sequence of nine classroom experiments suitable for a semesterlong (14 weeks) introductory course in "strategy," defined here as "principles of game theory." This sequence was developed for a course "Economics of DecisionMaking and Strategy" in the Department of Economics at Texas A&M University. The focus of the course is on applications of principles of game theory to realworld examples; the experiments are each designed to illustrate one of the key principles.
The course is a "writingintensive" course. Most of the experiments have an associated list of questions for students to ask themselves as they participate in the experiment. In the course, students write brief essays of 350400 words around one of these questions, or a related topic of their own choosing. Alternately, these questions can be used to initiate class discussion at the conclusion of the experiment, or at the next class meeting.
 Sequential search Costbenefit tradeoffs; expected value calculations.
 Information cascades Bayes Rule and probabilistic reasoning; thinking about other players' actions
 Prisoner's dilemma Dominant strategies; the prisoner's dilemma; oneshot versus repeated interaction
 Equilibrium and focal points Equilibrium in pure coordination games; focal points
 Coordination Tensions between cooperation and conflict; the stag hunt (assurance) game and lockin; the battle of the sexes
 Commitment Sequentialmove versus simultaneousmove games; the value of commitment
 Strippeddown poker A minimalistic poker game; randomization as optimal strategy; rational justification for bluffing; Bayes' Rule
 Signaling Asymmetric information; separating and pooling equilibria
 Agendas Strategic voting; Condorcet's paradox
Topics in Economic Classroom Experiments  
Auctions 

Markets 

Public Economics 

Industrial Organization 

Macroeconomics and Finance 

Game Theory 

Individual Decisions 
