Really wonderful applications of game theory. As a person who liked (s) economics, I am fascinated by this. Wonderful read.. :)
Originally posted on TED Blog:
How do we negotiate when to sell a stock, whether to rat out a partner in crime, how to play a poker hand, or what to ask for when negotiating a job offer? In each of these situations, the actions of others will greatly affect our outcomes — and yet, we have no idea what they are thinking. These are the kinds of situations that game theory has helped mathematicians and economists parse for decades.
In today’s talk, given at TEDxCalTech, behavioral economist Colin Camerer surveys new research that is taking game theory to the next level — by taking fMRI and EEG scans of people’s brains as they engage in bargaining games. The idea is to see what brain circuitry is used as people make decisions, and to map out what agreement and disagreement look like in the brains of humans … and in chimpanzees, who appear…
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