Stripped-Down Poker: A classroom game with signaling and bluffing

• Published in: The Journal of economic education 2008-09, Vol.39 (4), p.323-341
• Main Authors: Reiley, David H, Urbancic, Michael B, Walker, Mark
• Format: Article
• Language: English
• Subjects: Betting; Case Method (Teaching Technique); Classroom Communication; classroom experiment; Classroom management; Classroom Techniques; Classrooms; Course Content; Course Descriptions; Economic Instruction; Economics education; Educational Games; Educational Strategies; Equilibrium; Exhibits; Expected values; Game Theory; Games; Instructional Design; Kings; Nachrichtenübermittlung; Nash equilibrium; Plaintiffs; Poker; Poker games; Queens; signaling; Spieltheorie; Student Volunteers; Students; Tax audits; Teaching Methods; Test; Unterricht; Volunteerism; Volunteers
• ISSN: 0022-0485; 2152-4068
• DOI: 10.3200/JECE.39.4.323-341

The authors present a simplified, "stripped-down" version of poker as an instructional classroom game. Although Stripped-Down Poker is extremely simple, it nevertheless provides an excellent illustration of a number of topics: signaling, bluffing, mixed strategies, the value of information, and Bayes's Rule. The authors begin with a description of Stripped-Down Poker: how to play it, what makes it an interesting classroom game, and how to teach its solution to students. They describe how signaling, bluffing, and so forth emerge naturally as important features of the game and then discuss possible applications of this game-theoretic model to real-world interactions, such as litigation, tax evasion, and domestic or international diplomacy. They also suggest modifications of the game either for use in class or as student exercises. For reference, they conclude with a brief history of game-theoretic treatments of poker.