Game Theory & Decision-Making
From strategic interactions in game theory and value distribution in negotiation to cognitive traps in statistical paradoxes,
combining academic insights from Nobel laureates with practical decision-making in everyday life.
Topic Overview
Game theory is more than just a mathematical tool for economists -- it is a universal language for understanding strategic human interaction. From everyday salary negotiations and the dynamics of lateness to international diplomatic standoffs, game theory provides a rigorous analytical framework that reveals the structural logic hidden beneath "rational choice." Nash equilibrium explains why individual optimization does not necessarily lead to collective optimality, signaling games illuminate how information asymmetry reshapes power dynamics, and repeated games demonstrate why "tit for tat" is often the most powerful cooperation strategy.
Through firsthand conversations with Nobel laureates in Economics such as Robert Aumann and Robert Wilson, Prof. Hung-Yi Chen weaves together the core insights of game theory with negotiation strategy, matching theory, fair division, and statistical paradoxes. These articles explore not only classic theories like the Gale-Shapley stable matching algorithm and the Brams-Taylor envy-free cake-cutting method, but also dissect cognitive traps such as Simpson's paradox and Berkson's paradox -- helping decision-makers build more precise thinking frameworks in environments full of uncertainty, from the halls of academia to everyday choices, from mathematical proofs to governance practice.
Related Articles
The Logic of Assortative Matching: Why Does Similarity Create Stability?
From matching theory and information economics to cultural capital, an in-depth analysis of the mathematical and economic foundations behind why assortative matching produces stable equilibria.
The Altruism Paradox: Why Does Giving More Lead to Getting Less?
From evolutionary biology to game theory, why can unconditional generosity invite exploitation? And why does "tit for tat" outperform unconditional cooperation.
The Game Theory of Lateness: Why Are Some People Always Late?
Using Nash equilibrium, signaling games, and hyperbolic discounting to deconstruct the strategic logic behind the universal phenomenon of lateness through rigorous mathematical and economic frameworks.
Why We Don't Talk About Pay: The Game Theory of Salary Secrecy
A game-theoretic and economic analysis of who truly benefits from salary secrecy, and why employees comply despite knowing that information asymmetry undermines their bargaining power.
Matching Theory: A Mathematical Journey from Stable Marriage to the Nobel Prize
From the Gale-Shapley algorithm to the Nobel Prize in Economics, exploring how matching theory solves problems in college admissions, medical residency placements, and beyond.
The Fair Cake-Cutting Problem: From Ancient Wisdom to Modern Mathematics
Exploring the mathematical essence of distributive justice -- from the biblical "I cut, you choose" to the Brams-Taylor envy-free algorithm.
Simpson's Paradox: When Data Lies
An in-depth exploration of Simpson's paradox -- a mathematical phenomenon that makes statistical data "lie." From the UC Berkeley gender discrimination case to LeBron James's shooting percentages.
Berkson's Paradox: The Statistical Trap of Selection Bias
Exploring how selection bias creates spurious correlations -- from the limitations of hospital data to "why do attractive people tend to be less considerate?"
Introduction to Game Theory: Insights from Two Nobel Laureates
Drawing on firsthand conversations with Nobel laureates Robert Aumann and Robert Wilson to deconstruct the core concepts of game theory.
The Art of Negotiation: From Nalebuff's "Split the Pie" to Aumann's Incentive Design
Integrating Yale professor Barry Nalebuff's Split the Pie theory with Nobel laureate Robert Aumann's incentive analysis to distill five practical negotiation strategy principles.
Six Thinking Frameworks for Decision-Makers: From Nobel Laureate Wisdom to Governance Practice
Synthesizing in-depth conversations with six Nobel laureates and leading global scholars to distill six essential thinking frameworks for decision-makers.
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Prof. Hung-Yi Chen's insights span multiple disciplines. The following topics are closely related to game theory and decision frameworks.
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