How to beat the Prisoner’s Dilemma in the TV game show Golden Balls
Golden Balls is an amusing British game show. Especially interesting is the final contest which is a version of the Prisoner's Dilemma. If you're never seen the show, here is how it works. Each of two contestants independently chooses to split or steal the final prize. If both choose split, then ...

Number matching game
This is a game I created after reading about a similar card game in Game Theory: a Very Short Introduction. It's a simple example of a zero sum game that's slightly more complicated than rock-paper-scissors. Here is the game: Alice and Bob play a number matching game. Each simultaneously picks an integer ...

The card game le her
While game theory as we know it began about 60 years ago, there were game theory ideas dating back to hundreds and thousands of years ago (see how game theory solved a religious mystery). Another early example happened in 1713, when James Waldegrave provided a mixed strategy solution to a two-person ...

Attacking a target optimally: an example of war game theory from RAND 1957
The Prisoner's Dilemma. The doctrine of mutually assured destruction (MAD). These are just two of the game theory ideas that came out of the RAND corporation during the 1950s, forever associating game theory with the non-profit think tank. But there were other interesting game theory applications, too. I came across a ...

How to fix crowded elevators at work
After a long day of work, all that my friend wants to do is go home. But many days he is held up by the office building elevators, crowded from everyone leaving at the same time. The worst part is that people on other floors "game" the elevators and exacerbate the problem. ...

Puzzle: who wins this dart game?
Alice and Bob play the following game with their friend Charlie. Charlie begins the game by secretly picking a spot on the dartboard. The spot can be anywhere on the board, but once picked it does not change. Then Alice and Bob each get to throw one dart at the board. At this ...

When game theory backfires: a case study of Robert Campeau’s takeover bid
In 1988, Canadian financier Robert Campeau was attempting a takeover of Federated, a retail congomerate that owned Bloomingdales. The negotiations were quite interesting, and in 1990 Fortune magazine went so far as to call it "The Biggest, Looniest Deal Ever." One of the notable strategic elements was a "two-tiered offer" that Campeau ...

A rock-paper-scissors game in poker
In Texas Holdem, the best starting hand is pocket aces. This hand is favored against any other starting hand, and it's almost always a simple decision to play this hand pre-flop and play it aggressively. With other starting hands, it's a more complicated decision. The odds of winning depend on what ...

How to get straight A’s in college
A lot of people think that to get good grades you have to be a genius or study all the time. But that's not true. A grade is just a measure of performance--often subjective--in a class. So to get good grades requires the far less impressive skill: being able to perform ...

Game theory in Poker After Dark
There was a hand in the TV show Poker After Dark with some interesting strategy. The hand is from Season 6, Episode 49, and here's a clip where the hand gets interesting on the river: Youtube video: Poker After Dark hand at 7:52

Save on electricity costs by avoiding peak hours
Did you know electricity rates can change during the day, by as much as 40 percent? You might be able to save money by planning when you do laundry or run the dishwasher. As explained on the conEdison website: Energy-conscious customers can save money if you use electricity during off-peak periods when ...

The game theory of perfect complements
Can you think of a use for an unpaired left shoe? Off the top of my head, I cannot. A left shoe only has value to me if I have the corresponding right pair. In economics terms, this is because left and right shoes are perfect complements. But I am in fact ...

The game theory of free drinks
A couple weeks ago, a New York bar had an interesting promotion: From 11pm to midnight every 5th drink each bartender serves will be free. That means if the person before you orders four drinks, you win. Doesn't matter if it's top shelf: gratis. (You still have to tip though, you ...

The Price is Right Lucky Seven game – a good example of dominated strategies
The game show The Price is Right has so many fun games to analyze. One of my favorites is called "Lucky Seven" or "Lucky $even." This is a guessing game and the prize is a brand new car. Here is how the game works. You start out with seven one-dollar bills. You ...

A funny auction commercial
I came across a commercial featuring a rather unusual auction. I enjoyed this more than I'd like to admit... Before you watch it, a fair warning. This video is NOT for the faint of heart. If you don't like edgy comedy, just skip this post and don't watch the video. Here it ...