Economics students on break learn 'Art of Strategy'


 

More than 100 economics majors took home an extra project over winter break – reading “The Art of Strategy: A Game Theorist’s Guide to Success in Business and Life” by Avinash Dixit and Barry Nalebuff – and they did it voluntarily.

The project, funded by Barbara and Steve Friedman, both Class of 1959, was structured as a community read, and faculty embraced the idea as a way to help form community among economics students and allow for closer interactions between faculty and students in the large department, which has more than 500 majors. Before break, 115 students signed up for a copy.

During the first week of classes, 55 of these students took part in small discussion groups with faculty. The department also offered one credit to students who wanted to write papers about the book, said Monique Markoff, the department’s undergraduate experience coordinator. And a select group of those students will be invited to have dinner with Nalebuff when he comes to campus for a March 13 lecture.

“Game theory and strategy is everywhere in economics, as well as politics, government, finance, marketing and everyday life,” said Jennifer Wissink, economics senior lecturer and associate director of undergraduate studies, who led one of the discussion groups. “Part of the attraction of reading this book was to have students recognize how ubiquitous strategy is in their own lives.”

Indeed, some of the examples from the book that resonated most with students had little to do with backroom negotiations, and more to do with personal motivation, product pricing and even the odds of getting a speeding ticket if you’re traveling in a pack of people all going over the speed limit.

Game theory refers to a mathematical methodology used by economists and others to study strategic decision-making. It can be used in both collaborative and competitive relationships, as the authors make clear in the book, an update of their 1991 book, “Thinking Strategically.”

“The great thing about this book is that it shows how ideas in economics, like game theory, which can look at first glance dry and mathematical, can actually be very relevant for everyday life,” said Ted O’Donoghue, economics professor and director of undergraduate studies.

Erica DeMond ’17 said she was dismayed to read the case study explaining how textbook prices are inflated. “I enjoyed seeing how what I’m learning in class can be applied to the real world,” she said.

For James LaChapelle ’18, the “art” of strategy made sense to him, he said. “In the art versus science aspect of strategy, it seems there’s a lot of art involved in learning how to work with people” and convincing them to do what you want.

O’Donoghue said student feedback about the project has been so positive that the department will consider making it an annual event.

Kathy Hovis is a staff writer for the College of Arts and Sciences.

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