Game theory a graphic guide

Game as a model of interactions

Rationality and common knowledge of rationality

• common knowledge of rationality does not hold in practicce

Keynes’ beauty content: choose the most frequently chosen face

Thaler’s guessing game: pick a number between 0 and 100, winner is the number closest to 2/3 of the average

• over a thousand entries
• 33 is the most frequent, followed by 22
• average is 19, winner had the entry 13