Five games, five ideas
Each scenario card is a classic game with a trading story on top. Everyone chooses in secret, reveals together, and scores from the table on the card.
The Price War
Prisoner's dilemmaTwo companies sell the same thing. Each secretly chooses to hold its price or cut it, then both reveal.
Payoffs for The Price War: your points, then your rival's. | Rival: Hold | Rival: Cut |
|---|
| You: Hold | 3, 3 | 0, 5 |
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| You: Cut | 5, 0 | 1, 1 |
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Cutting is better for you whatever the rival does, so both cut and both end up worse off. That resting point is a Nash equilibrium.
The Standoff
ChickenTwo traders want the same deal. Each chooses to back down or push. If both push, both lose big.
Payoffs for The Standoff: your points, then your rival's. | Rival: Back down | Rival: Push |
|---|
| You: Back down | 2, 2 | 1, 4 |
|---|
| You: Push | 4, 1 | −3, −3 |
|---|
There is no single best move. Convincing the other side you will not back down can be the winning play.
The Auction
Sealed-bid auctionEveryone draws a secret value for the item, then bids chips face down. The highest bid wins and pays what it bid. Your score is your value minus your bid.
Bid your full value and you win nothing even when you win. Quants call the fix bid shading, and the trap the winner's curse.
The Split
Ultimatum gameOne player proposes how to split 10 chips. The other accepts, or rejects so that both get nothing.
Pure logic says accept any offer above zero. Real people reject unfair ones, and a good strategy plans for that.
The Tip-Off
Signaling gameOne player peeks at a hidden card that says whether the market goes up or down, then tells the other player something. It might be true.
Information is only worth what its source is worth. You learn to ask what the other player gains if you believe them.