How to Negotiate a Pay Raise with Game Theory
This vidcast is a true story of negotiating a pay raise from $12/hr to $300/hr using basic Game Theory. I keep the explanation nice and simple for an intro Game Theory lesson. If you finds this useful let me know and I’ll continue the series.
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Very cool.
I really enjoyed that and would be interested in seeing a lesson on how to apply game theory in other areas of life, such as relationships, dating, etc.
Thanks for the feedback. I’ll release a couple more Game Theory lessons in the future.
very cool.
please add more videos.
nice and informative video. though we do pay attention to where we are and where we want to be before every negotiation but this is a new perspective and a more systematic way of looking at it. thanks …. will also spur me to read more on game theory.
With about 9:07 left in the video: “Pretty much anything _uhh_ that benefits…” Gimme 5 dollars =P
Good catch, Jon. Thanks for keeping me in check! Unfortunately, as this video was published Apr 27th and the commitment was made June 2nd, that ‘uh’ is exempt as per point 3 of the fine print which states: ‘3) This commitment is effective from here forward.’
Hi Michael
I’m a Math university student from the UK and will be starting a final year project in Game Theory in September.
I was searching for Game Theory on youtube and found this video. I’ve also listened to your podcasts on other topics and just wanted to say, “Keep up the good work!”
Also if you could do more vidcasts on game theory that would be great for me, as I’m pretty much a beginner at the moment.
As a final note, what is this game go? it sounds cool is there any good websites you could post links to?
Thanks
Steve
Hi Steve - thanks for the feedback. I’m planning on doing more vidcasts on Game Theory, but the selfish truth is I am trying so hard to become a 3rd dan in go by the end of the year that studying it is taking up most of my free time. To answer your question, go is a 4,000 year old Chinese board game. It’s elegantly simple to learn, but the strategy is more complex than chess. I play as ‘EmptyMind’ on http://www.gokgs.com - you can take the tutorial there to learn the rules, then grab their client and play with other beginners if you like the game. Kind regards, -Michael
Dude, I’m sorry, but this was just awful. This is barely game theory and your explanation was very plodding, as was the introductory story. It appears to me that you learned the very valuable lessons: 1) that you should have thought your salary out before throwing out a number, and 2) that you should have negotiated harder.
This really was not game theory. This was a very simplistic subset of game theory, if that — basically a weighing of pros-and-cons. It would be much more informative if you assigned probabilities to each choice, likely (monetary) outcome, calculated the expected value of the various strategies, and then determined an optimal, or, at least, good strategy based on that.
It’s good that you tried, and you should keep working and thinking this out. But, please, for something that claims to be a game theory analysis, this falls far short.
Max - thanks for the feedback. I completely agree, and have been thinking the same lately. I plan on releasing a few more lessons on game theory in the future that will be significantly better. Keep in mind, though, this video was meant as a most basic introduction. Including mixed probabilities with each strategy would complicate this example unnecessarily, and it would be better introduced later in a better suited example. That said, I know this lesson totally blew. Thanks for calling me on it. The next lessons will be better.
You make it look too simple to be true! but hey I will tell you you are great…. let’s have chapter 2 pleeeeeeez
Thanks, Yuri. Due to popular demand I promise to make a chapter 2 soon, and it will be better game theory than the last.
Hey Michael,
I saw your video on game theory. It was pretty good, in terms of explaining it, and getting people interested. However, it wasn’t completely precise, in terms of terminology, and concepts, (e.g. you didn’t talk about the probabilities of each), and signaling which is just as important.
Game theory is a big thing of mine. I’m a political science and quantitative economics major, and my undergrad diss. was on game theory. I kind of combined game theory with political stuff. If you interested in reading it let me know. But overall good starter.. to get people interested in.
-Zoheb
P.S. i added you to facebook, and msgd you.