Game Theory
This famous game portrays two criminals who must decide whether to betray each other
What is the prisoner's dilemma?
In 2021, President Joe Biden appointed this former Fed chair to lead the U.S. treasury
Who is Janet Yellen?
This fallacy is the tendency to stick with a losing investment due to past costs
What is the sunk cost fallacy?
This movie about the 2008 financial crisis involved Margot Robbie explaining collateralized debt obligations in a bathtub
What is The Big Short?
This state in a game describes when no player can unilaterally improve their outcome
What is a Nash equilibrium?
This Chicago school economist asserted that firms' sole responsibility is generating shareholder value
Who is Milton Friedman?
This psychological bias makes people give greater weight to recent events than long-term trends
What is recency bias?
The social media-fueled "meme stock" rally in 2021 saw organized online investors battle hedge funds by plotting a "short squeeze" of this retail company
What is GameStop?
This game theory term describes a situation where one party in a transaction knows more than the other
What is asymmetric information?
In the Oscar-winning A Beautiful Mind, this Nobel laureate and CMU alum was portrayed by Russell Crowe
Who is John Nash?
This is the tendency to seek information that confirms preexisting beliefs
What is confirmation bias?
This cryptocurrency started as a joke but became a major speculative asset and now lends its name to a U.S. federal department
What is Dogecoin?
This is a market outcome where bad products drive out good ones due to hidden information
What is adverse selection?
This U.S. Secretary of Labor met his future boss Bill Clinton as Fulbright fellows when he got seasick on the boat to England and Clinton showed up with soup and crackers
Who is Robert Reich?
This effect explains why people react more strongly to losses than equivalent gains
What is loss aversion?
Jonah Hill plays an analyst who applies econometric modeling to revolutionize the MLB in this movie
What is Moneyball?
This is the principle that explains why cooperation is more likely when players interact more than once
What is repeated games theory?
In 1998, this New Keynesian economist and Nobel laureate wrote that "[b]y 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's"
Who is Paul Krugman?
This bias, also called divestiture aversion, causes people to overvalue things simply because they own them
What is the endowment effect?
Paul Giamatti played this Fed chairman and archenemy of James Maloy in HBO's Too Big to Fail
Who is Ben Bernanke?