Tom, from the COF in Milwaukee, had these resources & notes to add to the discussion on Game Theory.

http://mba.vanderbilt.edu/Mike.Shor/courses/game-theory/

Lecture 7 has a discussion on irrationality on the right.
Lecture 8 talks about burning money.
Lecture 11 talks about auctions.
Lecture 12 describes the winner's curse from auctions.

Stick to the Readings on the right hand side of each page.
The lecture notes won't make much sense without the speaker filling in the concepts.

I found the previous url here:

http://www.gametheory.net/

There are many other lectures in particular areas of interest.
Alas, some of the lectures are no longer accessable.

The News section has many real life applications of game theory.
You can search the articles by application type up at the top of the News page.

Irrationality in online auctions:

http://www.ozmioz.com/resources/blurbsBusiness/eBay.htm

You can join a online experiment on game-theory at http://www.vpro.nl/wetenschap/experiment/index.shtml