Economics Classroom Experiments/Introductory Strategy

Experiments for an Introductory Course in Strategy
This is a sequence of nine classroom experiments suitable for a semester-long (14 weeks) introductory course in "strategy," defined here as "principles of game theory." This sequence was developed for a course "Economics of Decision-Making 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 real-world examples; the experiments are each designed to illustrate one of the key principles.

The course is a "writing-intensive" 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 350-400 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.


 * 1) Sequential search Cost-benefit tradeoffs; expected value calculations.
 * 2) Information cascades Bayes Rule and probabilistic reasoning; thinking about other players' actions
 * 3) Prisoner's dilemma Dominant strategies; the prisoner's dilemma; one-shot versus repeated interaction
 * 4) Equilibrium and focal points Equilibrium in pure coordination games; focal points
 * 5) Coordination Tensions between cooperation and conflict; the stag hunt (assurance) game and lock-in; the battle of the sexes
 * 6) Commitment Sequential-move versus simultaneous-move games; the value of commitment
 * 7) Stripped-down poker A minimalistic poker game; randomization as optimal strategy; rational justification for bluffing; Bayes' Rule
 * 8) Signaling Asymmetric information; separating and pooling equilibria
 * 9) Agendas Strategic voting; Condorcet's paradox