Tuesday, December 13, 2016

Jokes for Economists. No... really...





That's Nash.

A traditional economist, a game theorist, and a behavioral economist are about to walk into a bar.  The behavioral economist says, “Since we all know that we are going to drink too much and get into an argument, we should not all go in.” The traditional economist says, “Since my rational inter-temporal preference is not to have a hangover tomorrow morning, I agree.” Then the game theorist says, “Well then you two should give me the expected value of the drinks you would have drunk and I’ll go in and have a beer and the quiche and find myself the Nash girl in the bar.” The traditional and behavioral economists hand over their money to the game theorist, they all agree that it was a lovely evening, and part ways.