The Dark Knight
Media Type: Film Clips Topic: Game Theory, Incentives
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The Joker enlists five helpers to rob a bank. They all think they are getting an equal share but the Joker has another plan. Each of the helpers is given a special instruction to take out one of the other guys after that person completes his part of the job. At that point the person is expendable and taking him out increases the size of the shares that the others get. What makes the scene such a good example of backwards induction is that none of the helpers ever stop to realize that once they become expendable that they will be taken out. This scene is a perfect introduction to game theory.Available on iTunes Available on Amazon.com
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