TED-Ed: Game theory challenge: Can you predict human behavior? | Lucas Husted

The video explores a guessing game where participants choose a number closest to 2/3 of the average guess. It delves into game theory concepts like common knowledge and Nash equilibrium, explaining how rationality affects decision-making. Real-world results show deviations from perfect rationality. The concept of K-level reasoning is introduced, illustrating its application in high-stakes situations like stock trading and soccer. The video encourages viewers to consider how understanding these concepts might alter their approach to the game.

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