So you’re standing at the edge of a cliff, chained by the ankle to someone else. You’ll be released, and one of you will get a large prize, as soon as the other gives in. How do you persuade the other ...

I'm a microeconomist by training and use the economic theory of games throughout most of my research program. Game theory is used as a tool for economic analysis whenever two or more players (people, ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Human behavior drives the evolution of biological organisms in ways that can profoundly adversely impact human welfare. Understanding people's incentives when they do so is essential to identify ...

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Robert Kelly is managing director of XTS Energy LLC, ...

When gasoline is expensive, people grumble that big oil companies like Chevron and ExxonMobil are colluding to keep prices high. They’re wrong. The best way to understand why businesses aren’t ...

Twenty years on, the 2005 economics Nobel-winning duo Schelling and Aumann’s work offers several lessons to understand ...

People like to help those who are helping them, and to hurt those who are hurting them. Outcomes reflecting such motivations are called fairness equilibria. Outcomes are mutual-max when each person ...

SIXTY YEARS ago, a dispute over the placement of Soviet missiles in Cuba pushed Washington and Moscow perilously close to all-out war. The crisis provided history’s most extreme example yet of nuclear ...

In its negotiations on the two key infrastructure bills, Congress members are utilizing the classic economic concept of game theory to outmaneuver one another. We look at what this federal ...

Claudia Winkleman, a television presenter with a helmet of shiny hair, is not a typical economics teacher. Yet students should consider her game show. Those learning outside Britain may opt for any of ...