! BackMobLabHarrington: Games, Strategies and Decision Making

Chapter 1: Introduction to Strategic Reason

Beauty Contest: a.k.a. the Keynesian Guessing Game. Whetting the appetite for the class. Not much will be explained at this time—just leave students with some basic intuition, as we will come back to this game more formally and in-depth in Chapter 3.

Chapter 2: Building a Model of a Strategic Situation

Extensive form game: alternating round bargaining.

Strategic form game: Prisoner’s Dilemma, either the matrix or Push n’ Pull.

Chapter 3: Eliminating the Impossible

Beauty Contest: a.k.a. the Keynesian Guessing Game. Demonstrate iterative logic and forecasting.

Private Value, Sealed Bid Auction: with second-price rule

Chapter 4: Nash equilibria, 2-player games

Matrix: design your own m x n game

Coordination Games: Battle of the Sexes, Stag Hunt; Minimum Effort

Chapter 5: Nash equilibria: discrete n-player games

Judge Me Not: complicated payoff function, interior equilibrium with n>13

Chapter 7: Equilibria in mixed strategies

The Classics: Matching Pennies; Rock, Paper, Scissors

MinMax: Asymmetric, mixed-strategy equilibrium

Hide & Seek: Do focal points affect equilibrium play?

Matrix: design your own m x n game

Chapter 8: Sequential Games


Ultimatum: Available in either game-play or strategy method

Chapter 10: Private Information

Auctions: First-price private value; Common value

Chapter 11: Signaling

Market for Lemons: Classic game leads to discussion of real-world solutions

  1. 2nd edition.