It is a difficult class. It is a math-heavy class. But if you stick with it through the lecture on Bayesian Games, you will realize you aren't just learning economics. You are learning the operating system of human strategy.
But they also gave me a superpower. I now see the invisible architecture of conflict and cooperation everywhere. I understand why voting feels pointless (Median Voter Theorem). I understand why you tip at a diner you'll never visit again (Subgame Perfect Equilibrium).
You look up from your notes. You realize your friend just bluffed you in a negotiation yesterday. Your brain tingles. That’s the dopamine hit of a good lecture. Everyone loves the Pure Strategy lectures. They are clean. "If they go left, I go right." But then comes Lecture 7: Mixed Strategies . Game Theory Lectures
But then, around the third lecture, something clicked. Suddenly, I wasn't just solving equations. I was realizing why traffic jams happen, why companies lower prices until no one makes a profit, and why my roommate never washes the dishes. Game Theory lectures don't just teach you math—they teach you how to read the room of reality .
You learn to solve this via Backward Induction . You start at the end of the game and rewind. Suddenly, you realize the Monopolist is bluffing. A price war hurts them more than you. Therefore, the Entrant should always enter. It is a difficult class
Instead, I got a blackboard full of matrices, strange squiggly lines, and a professor muttering about "common knowledge of rationality."
But then the professor introduces the . It proves that rational players will betray each other immediately , even though waiting would make them both millionaires. You are learning the operating system of human strategy
The magic happens during the module. The professor draws a tree diagram. You have two players: an Entrant and a Monopolist. The Entrant decides to "Fight" or "Acquiesce." The Monopolist decides to "Price War" or "Accommodate."