On the afternoon of March 31st, 2021, the fourth session of “The Economic Way of Thinking” Lecture Series was held in Auditorium 205 of the Central Main Building, with the theme of “Strategic Thinking in Group Interaction”. The event was delivered by Prof. Wang Yong, Tenured Associate Professor of the School of Social Sciences, Tsinghua University to doctorate candidates of Institute for International and Area Studies, Tsinghua University (IIAS-THU).

This lecture was comprised of five parts. In the first part, Prof. Wang interpreted interactive decision-making and game theory in terms of the definition, classification and nature of game theory. Afterwards, he referred to classical literature to introduce the implications of trends, patterns and strategies in economics. Later, Prof. Wang elaborated circular reasoning and high-order logic in five aspects, namely game decision-making and circular reasoning, first-order, second-order and high-order logic, common knowledge and public knowledge, the story of Romantic Island, and the application of high-order logic. In the fourth part, he illustrated the relationship between dynamic game and reverse reasoning by quoting the punchlines of Tang Dynasty poets and the theories of leading economists. At the end of the lecture, Prof. Wang brought a case study of “getting out of Prisoner’s Dilemma”. He explained the definition of Prisoner’s Dilemma, its embodiment in real life and solutions, including authority mechanics, repeated game mechanics and property right mechanics.

Prof. Wang Yong is Tenured Associate Professor of the Institute of Economics at the School of Social Sciences, Tsinghua University and Member of the Academic Committee of IIAS-THU. Prof. Wang holds a PhD from Guanghua School of Management of Peking University and served as a postdoctoral fellow at Department of Economics of Harvard University. He was appointed as Deputy Director of the Institute of Economics at Tsinghua University in 2012 and further served as Executive Vice President of the Institute of Minsheng Economic Research at Tsinghua University. His research interest covers game theory and its applications, theories of Internet economy and enterprises and park economy.

Text by: Wang Zijing
Photography by: Wang Zijing