The Game Theory Behind Early Decision

We are in the midst of our discussion about game theory; at the same time, the annual ritual of the college application process is growing to a climax.  As your teacher, I am aware of this fact, given how much time I spend writing letters of recommendation from mid-October to late-November.  Therefore, it seems to take a moment during this stressful time and analyze the college admissions process through the lens of game theory.


I would like for you to read this article from The Atlantic magazine.  I will warn you now, the article is lengthy, but given the topic I don't think that you will find it boring.  I would like for you to consider the college admissions process as an example of game theory, and to answer the questions below:

• What is the history of early decision?
• Analyze this quote from the article using game theory:  "No one wants to be the first one to take the step, so everyone needs to step back together."  What is the speaker referencing, and how does game theory apply to the quote?
• Using what we have learned about game theory, suggest why the author's proposal would not work?
• How do you feel about the early decision process?  After all, you are all wrestling with this issues now.

The first post will be due on November 5th at midnight.  The second post will be due on November 13th at midnight.


Addendum:  Now that you have examined the game theory behind college, let us assume for the moment that college is not in your future:  instead, a life of crime awaits you!  Let's examine the game theory behind a REAL prisoner's dilemma.


Here is the opening scene from The Dark Knight.  I would like for you to watch the clip and answer the questions.

• How is this scenario an example of game theory?
• Listen to the conversation in the car at the beginning.  What does the driver suggest about The Joker?
• What was the strategy for each of the robbers?
• How might their strategy change if they were a true criminal gang that would work together in the future?
• What SHOULD each of the robbers have done?

This blog post will be due November 13th at midnight.

Sin Taxes

Recently we talked about taxes, and one of the things mentioned was that taxes serve double duty:  not only do they bring in government revenue, they can also serve to "nudge" us toward proper behavior.  For example, taxes on alcohol are not just to raise money; by making that six pack just a little more expensive, states can discourage the marginal drinker from buying a little extra booze, thus sparing society from the bacchanalian mayhem that might ensue.  Recently, the government has proposed another potential "sin tax" that might hit a little closer to home...

Please read the following article and then answer the questions below:

• What is your view on this particular tax?  Is taxing sugary drinks a viable solution to help end obesity?
• Look carefully at paragraph four; there is lots of juicy economics in that little passage.  Based on what you read, is soda an elastic or inelastic good?  Explain.
• What do you think of the beverage lobby's argument against the tax?  Is this tax regressive (i.e. hurts the poor more than the rich?)  Does that matter when it comes to taxes?
• Are these "sin taxes" morally correct?  Is it okay for the government to use taxes to "nudge" us to proper behavior?

The first post for this blog question is due by midnight on Saturday, October 22nd.  The second post is due by midnight on Sunday, October 30th (spoooooooky!).