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.

What new insight or understanding did you gain from this video?