How do you decide? – Decision Theory and Uncertainty | with Itzhak Gilboa

In this episode, we explore the foundations and evolution of decision theory. Our guest, Itzhak Gilboa, begins with a brief historical overview of how the field has developed over time. We naturally discuss maximising expected utility, Bayesian decision theory, and Savage's representation theorem. Itzhak then delves into critiques of the Bayesian approach, especially concerning its interpretation of what constitutes a "rational decision maker." He presents a range of alternative decision frameworks, including approaches that do not require individuals to specify a full subjective probability distribution.   Itzhak Gilboa is Professor of Economics and Decision Sciences at HEC Paris.

In this episode, we explore how game theory and network effects intersect to inform optimal incentive structures in organizations. Pau Milán walks us through his recent research, co-authored with Nicolás Oviedo-Davila and Marc Claveria, which uses a novel game-theoretic model to show how the productivity of one employee can amplify the output of others in their network—and how firms can leverage this to design smarter compensation schemes. Drawing on real-world examples and his theoretical work, Pau offers practical insights for employers and economists alike.   Pau Milán is an Associate Professor of Economics at Universitat Autònoma de Barcelona (UAB) and an Affiliated Professor at the Barcelona School of Economics (BSE). His research interests include Social and Economic Networks, Information Economics, Development Economics, Organisations, and Applied Game Theory. You can find the working paper "Incentive Contracts and Peer Effects in the Workplace" here.

In this episode we explore the most classical topic from Game Theory – equilibrium analysis. Our guest Colin Camerer shares insights on the game LUPI ('lowest unique positive integer'). We first discuss the actual mathematical equilibrium analysis and then dive into real life: results from a Swedish game show in which the game was played in a lottery format. Colin also compares the results from the game show with a study of the same game in a controlled lab environment. We finish the episode by deep-diving into level-k reasoning and Colin shares an example based on the role of published movie reviews.   Colin Camerer is the Robert Kirby Professor of Behavioral Economics at Caltech. His research interests include decisions, games, and markets.

In this episode we explore the economic and strategic foundations of networks – from personal connections in the labor market to complex webs of international trade and conflict together with our guest Matthew Jackson. He unpacks how networks shape opportunities, inequalities, and global dynamics, and how game theory helps us understand the power and fragility of these structures. Along the way, we discuss surprising applications, including the role of tariffs in supply chains and how network insights can explain patterns of cooperation and rivalry.   Matthew Jackson is the William D. Eberle Professor of Economics at Stanford University. His research interests include game theory, microeconomic theory, and the study of social and economic networks.

In this episode we are talking about corporate scandals, selfishness, and how game theory can help us understand when people give in to temptation. Carlos Alós-Ferrer explains how his "Big Robber" experiment shows that while people often act pro-socially in classical economic games, things change when individuals are given the chance to earn large sums of money at the expense of harming many others. We also discuss how insights from psychology and neuroscience enrich economics by highlighting the importance of process data such as response times.   Carlos Alós-Ferrer is Chair Professor of Economics at Lancaster University (UK). His research spans economics, psychology, and neuroscience, with a focus on decision-making processes and the interdisciplinary field of psycho-economics. He is Editor-in-Chief of the Journal of Economic Psychology and also writes the blog Decisions and the Brain on Psychology Today.  

In this episode, we dive into the world of experimental research on unstructured bargaining, exploring how real-world negotiations unfold when stripped of rigid rules and scripts. Our guest Emin explains how opening offers shape the conversation, the unspoken dance of reputation, and the ticking clock of deadlines – showing that even in seemingly messy contexts, strategic patterns emerge.   Emin Karagözoğlu is Associate Professor of Economics at Bilkent University. His work spans behavioural and experimental economics, game theory, and neuroeconomics, with a strong research focus on bargaining, fairness, morality, and dynamic negotiation processes.

In this episode we explore what motivates people to give, using insights from a Dutch TV game show where a live audience decides how to split €10,000 among three contestants. We discuss how real-world data from natural experiments can help answer questions about fairness, impact, and generosity - and what this means for fundraisers and policymakers.   Dennie van Dolder is Senior Lecturer (Associate Professor) at the University of Essex. His research focuses on behavioural economics and empirical game theory, often drawing on data from game shows to study real-life decision-making.

In this episode we dive deep into the economics of digital markets with Dirk Bergemann. We discuss how search platforms like Google created entirely new marketplaces around user attention and private information, what makes digital markets so unique, and how auction design evolved to match the scale and complexity of internet advertising. Dirk also shares insights from his own research on how platforms collect and use user information and gives an economist's perspective on how emerging technologies - like large language models - might reshape the future of search and advertising.   Dirk Bergemann is Douglass and Marion Campbell Professor of Economics at Yale University and an expert in game theory, contract theory, and market design. Among others, his research is focused on economics of digital markets - especially those shaped by search engines and advertising auctions.

In this episode, we talk to David Pinsof about the surprising ways people form their beliefs and build alliances. Drawing on his survey with Cards Against Humanity, he shares how people often hold contradictory views and what this reveals about group coordination. We also dive into his game-theoretic model of coalition-building, explore how humor functions as a coordination tool, and discuss the deeper logic behind seemingly irrational behavior.   David Pinsof is a behavioral scientist whose work combines evolutionary psychology and game theory, to understand belief formation and social dynamics. He is also one of the co-creators of "Cards against Humanity", the author of the blog Everything Is Bullshit and recently launched the podcast - Evolutionary Psychology (The Podcast) - in which he explores cutting-edge work in the evolutionary behavioral sciences. You can find the paper „Strange Bedfellows" David mentioned in the episode here.

In this episode we are talking to Vitali Gretschko about how generative AI can be used to simulate strategic behaviour in auctions. We explore where AI tools can support auction design, where they fall short, and how practitioners should interpret simulation results. Vitali also explains why AI is best seen as a co-intelligence that needs expert guidance.   Vitali Gretschko is Professor for sustainable Market Design at the University of Münster. His research focuses on auction theory, market design, and applying game theory to practical strategic problems.