The Importance of Simplicity in Market Design and Game Theory Concepts

In this episode we are talking to Shengwu Li about simplicity in game theoretic concepts. He explains to us, what simple means in this context, how this notion facilitates application of game theory to the "real world" and what an obviously dominant strategy is. We discuss how this understanding of game theory can be particularly helpful when conducting auctions and what practitioners need to know beyond that to harness game theory's predictive powers.

Shengwu Li is Associate Professor of Economics at Harvard University. His research is focused on Microeconomic Theory, Market Design and Behavioral Economics.