Colin Camerer: When you're making a deal, what's going on in your brain?

The video explores the intersection of game theory and neuroscience to understand social interactions. It introduces game theory concepts like cognitive hierarchy and equilibrium analysis, highlighting their applications in economics and strategic thinking. The video examines brain activity during strategic games using fMRI and EEG, revealing insights into human and chimpanzee behavior. It concludes with a comparison of strategic thinking between humans and chimps, showing chimps' superior adherence to game theory.

What is the primary focus of game theory as discussed in the introduction?

• Studying biological processes

• Analyzing social interactions when value is involved

• Understanding individual decision-making

• Exploring mathematical equations

In the simple game example, what is the goal for participants?

• To choose the lowest number

• To be closest to two-thirds of the average

• To be closest to the average

• To choose the highest number

What does cognitive hierarchy theory suggest about strategic thinking?

• People use a hierarchy of steps in their thinking

• People do not use memory in decision-making

• People always reach equilibrium

• People think in a linear fashion

According to equilibrium analysis, what is the predicted behavior in strategic games?

• Players will choose zero

• Players will choose random numbers

• Players will choose based on emotions

• Players will choose the highest possible number

Which brain region is associated with the 'theory of mind' circuit?

• Occipital lobe

• Medial prefrontal cortex

• Cerebellum

• Hippocampus

What is the main challenge for the uninformed player in the bargaining game?

• To end the game quickly

• To guess the total amount of money

• To make the first offer

• To determine if the offer is fair

What does the EEG data suggest about brain activity during successful negotiations?

• Activity is random

• Both brains are inactive

• Uninformed brain activity leads

• Informed brain activity leads

What hypothesis is tested by comparing human and chimpanzee strategic behavior?

• Memory retention hypothesis

• Cognitive trade-off hypothesis

• Equilibrium hypothesis

• Cognitive hierarchy hypothesis

How do chimpanzees perform in strategic games compared to humans?

• Chimps perform worse than humans

• Chimps perform equally to humans

• Chimps do not participate in games

• Chimps perform better than humans

What is a key takeaway about human strategic thinking from the lecture?

• Humans are better than chimps in all games

• Humans use limited strategic thinking

• Humans always reach equilibrium

• Humans rely solely on emotions