Game Time

Today I didn't get back my Economics midterm like I thought that I might. However, I did add an extra 2.75 points to my score on it class today. Being a game theory class, we play lots of games for rather obvious reasons. We played a game today that involved distributing 5 points and someone asked if these points meant anything. The class convinced the professor they should, so he decided he will add the points to our midterm.

The game was rather simple. Half the class would decide how they wanted to distribute their 5 points with another random person in the class. If this other person agreed to the proposal, you would both get the specified amount. If the person rejected the offer, both would get nothing.

Being a budding game theorist, I knew theoretically I could offer the other person only 1 point and they were better off taking it. I had to balance my selfishness and generosity. I was going to put 2.5 points for both of us, but I mean these points were going towards the midterm so I offered 2.75 points for myself and 2.25 for the other. Thankfully, they accepted my offer. I feel a bit guilty, but other offers were definitely less generous than my own but that shouldn't really make me feel any better either.