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I just came across this piece by a UCLA professor.
This is a brilliant way to teach the subject matter, in this case game theory.
It would be a good idea to expand this to other subject matters.
In computer science education, there often are project classes, where small teams work together on projects during the course of the quarter/semester. In these project teams, there is some of the social interaction described in this piece, although on a smaller scale.
Here, having the whole class involved, the interaction is much more intense. And of course, this better reflects real life.