Topic guide

What changes when decisions depend on other people?

Make a small strategic model explicit, then separate best responses, equilibrium and desirable outcomes.

For: Serious beginners in game theory and social decision-making.

Begin here

  1. Open Yale Courses · Source-checked annotation

    Lecture 1 - Introduction: Five First Lessons

    Open Yale Courses Speaker not established intermediate Duration unknown

    Yale’s classroom game makes players, actions and payoffs concrete before introducing formal solution concepts.

A choice changes character when its consequences depend on someone else’s choice. You must consider what the other person can do, what they care about and what they know. Game theory provides a language for making those assumptions explicit; it does not supply those assumptions automatically.

The starting Yale lecture builds a game from a classroom example. Its written first-class summary, dated autumn 2007, makes a valuable distinction between outcomes and payoffs. The same visible outcome can matter differently to people with different preferences. That is why a table of rewards should be examined before declaring a particular action rational.

Follow the second lecture to add beliefs about the other player. Best-response examples then ask what a player should do given a specified expectation. Nash equilibrium adds mutual consistency: each choice is considered against the choices of the others. In the selected coordination lecture, equilibrium is explicitly separated from a good collective outcome. A stable pattern need not be a desirable one.

Gendler’s treatment of the prisoners’ dilemma and the commons supplies another disciplinary framing. It helps connect a formal structure to a collective-decision question, but an analogy still needs checking. Do the people have the proposed options? Are the payoffs plausible? Can they communicate, make commitments or expect to meet again? Those are changes to the model, not minor background details.

The final behavioural-games selection points towards a further task: comparing predicted choices with observed ones. A discrepancy can expose a poor behavioural assumption, an incorrect payoff model or an unrepresented feature of the setting. It should not automatically be called irrationality.

The exercise keeps the game small enough to inspect by hand. Find best replies, change one payoff and repeat. Then list what the table omits. This route is a preparation for modelling and criticism, not personal financial or negotiation advice. For a deeper sequence, follow the accompanying path into sequential choices, information sets and repeated interaction.

Build the connection

  1. Open Yale Courses · Source-checked annotation

    Lecture 2 - Putting Yourselves into Other People's Shoes

    Open Yale Courses Speaker not established intermediate Duration unknown

    State beliefs about others. The second lecture adds sophistication and common knowledge to the basic ingredients.

  2. Open Yale Courses · Source-checked annotation

    Lecture 4 - Best Responses in Soccer and Business Partnerships

    Open Yale Courses Speaker not established intermediate Duration unknown

    Find a best response. Worked examples connect a belief about another player to a choice.

  3. Open Yale Courses · Source-checked annotation

    Lecture 5 - Nash Equilibrium: Bad Fashion and Bank Runs

    Open Yale Courses Speaker not established intermediate Duration unknown

    Look for mutual consistency. The equilibrium lecture asks when choices are best responses to each other.

  4. Open Yale Courses · Source-checked annotation

    Lecture 20 - The Prisoner's Dilemma

    Open Yale Courses Speaker not established foundation Duration unknown

    Compare a philosophical treatment. Gendler discusses the prisoners’ dilemma and commons as collective-decision problems.

  5. NPTEL — National Programme on Technology Enhanced Learning

    Introduction to Behavioral Games

    NPTEL — National Programme on Technology Enhanced Learning Speaker not established Level not established Duration unknown

    Enter behavioural games. The NPTEL course offers a route from analytical game theory towards behavioural comparisons.

Change one payoff

Create a two-player, two-action table with explicit outcomes. Circle each player’s best reply to each possible action of the other. Change one payoff and repeat; explain what information the table leaves out.

Exercise or methods at source ↗

Read alongside

Go into the full course →

Next step

Follow the strategic-interaction path into sequential choices and repeated games.

Limits of this route

The Yale course is from Fall 2007 and formally requires introductory microeconomics, calculus and probability preparation. Its model-based predictions are conditional on assumptions and not automatically empirical descriptions or personal advice. Source checks establish scope and selection usefulness; they do not claim full-video viewing, human review or scientific validation.

Sources and editorial check · 2026-11-07

Individual publisher overviews for selected Yale/MIT material; ordered official NPTEL outlines and available course descriptions; the specifically identified supporting reading sections. Each source record states its inspection limit.

Checked by agent. This is not human peer review.

  1. Lecture 1 - Introduction: Five First Lessons — official publisher material

    Retrieved 2026-11-07. Official lecture Overview paragraph. Transcript is linked or included on the page but was not read in full; video not viewed.

  2. Lecture 2 - Putting Yourselves into Other People's Shoes — official publisher material

    Retrieved 2026-11-07. Official lecture Overview paragraph. Transcript is linked or included on the page but was not read in full; video not viewed.

  3. Lecture 4 - Best Responses in Soccer and Business Partnerships — official publisher material

    Retrieved 2026-11-07. Official lecture Overview paragraph. Transcript is linked or included on the page but was not read in full; video not viewed.

  4. Lecture 5 - Nash Equilibrium: Bad Fashion and Bank Runs — official publisher material

    Retrieved 2026-11-07. Official lecture Overview paragraph. Transcript is linked or included on the page but was not read in full; video not viewed.

  5. Lecture 20 - The Prisoner's Dilemma — official publisher material

    Retrieved 2026-11-07. Official lecture Overview paragraph. Transcript is linked or included on the page but was not read in full; video not viewed.

  6. Principles of Behavioral Economics — official course outline

    Retrieved 2026-11-07. Official ordered lecture outline and course attribution inspected. No substantive course description was supplied; the item is selected for its named topic and place in the outline only. No individual transcript read or video viewed.

  7. Ben Polak: summary of the first Game Theory class, Fall 2007

    Retrieved 2026-11-07. Text from the three-page PDF read: outcomes/payoffs, preferences, dominance, coordination and prisoners’ dilemma. Some mathematical symbols were imperfectly extracted; no numerical matrix is reproduced.

  8. Game Theory — course context

    Retrieved 2026-11-07. Official course description and requirements inspected. Course year is not asserted to be the exact recording date of every item.

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