Most Downloaded Articles
- An Instructional Exercise in Price Controls: Product Quality, Misallocation, and Public Policy by Weisman, Dennis L./ Sanders, Shane D. and Moundigbaye, Mantobaye
- Third-Degree Price Discrimination by Liu, Qihong and Serfes, Konstantinos
- How Do We Get Cobb-Douglas and Leontief Functions from CES Function: A Lecture Note on Discrete and Continuum Differentiated Object Models by Saito, Tetsuya
- The Intuitive and Divinity Criterion: Interpretation and Step-by-Step Examples by Munoz-Garcia, Felix and Espinola-Arredondo, Ana
- Dynamics of Competitive Rivalry by Maggitti, Patrick G./ Coff, Russell W./ Hatfield, Donald E. and Ferrier, Walter J.
Nudging Students Forward Towards Backward Induction
1Franklin and Marshall College
Citation Information: Journal of Industrial Organization Education. Volume 5, Issue 1, Pages 1–6, ISSN (Online) 1935-5041, DOI: 10.2202/1935-5041.1032, March 2011
- Published Online:
This paper uses variations in a popular parlor game to provide useful instructional benefits. The paper builds a classroom activity to nudge students towards thinking in a backward-inductive manner. The pedagogic innovation is in introducing the game repeatedly with progressively smaller action spaces in every repetition. As the numbers of available actions become smaller and smaller in the reduced games, students stumble on to the backwardly inductive winning strategy. The described procedures are also useful in laying down the intuitive foundations of the concepts of dominant strategies, and first- and second-mover advantages.