Taking risks by flying paper airplanes

Abstract

We propose an outdoor activity for game theory courses in which students are invited to fly self-made paper airplanes to earn points in three tests. The main goal of this outdoor classroom experiment is to help students learn by experiencing concepts of uncertainty in the domain of profit, specifically risk aversion. After the experiment, students are encouraged to reflect on decision making under uncertainty. We present a theoretical model to explain the decisions made by the participants, their optimal behavior and any deviations from it. Our activity aims to introduce the study of decision making under uncertainty through an experience.

JELcodes: A22, C70, C99