Game Theory, Bayes’ Rule, and Football
http://runcodhit.blogspot.com/2010/03/game-dynamics-and-football-part-ii.html Preparation is the key to success in American football, and studying your opponent’s tendencies plays a vital role in preparing for an opponent. As the article in the link rightfully points out is that football coaches are always trying to find ways to get a leg up on their opponent. Game theory can […]
Freemium Services in Terms of Network Effects
In discussing network effects, we considered the balance between consumers’ reservation price as the product of users’ value for using the product and the network effect as a function of users that use the product and the price of the product. The result was a users’ reservation price for the product as a function of […]
Quorum Response: A Form of Information Cascade Used in Animal Groups
http://rstb.royalsocietypublishing.org/content/364/1518/743.full.pdf So far in class, we have learned that information cascades can produce wrong choices, be based on very little private information, and are fragile. The primary lesson learned from information cascades, as mentioned in the course textbook, is to be careful drawing conclusions about the behaviors of crowds, as the crowd can be wrong, […]
Negative Impacts of Information Cascade
http://globalguerrillas.typepad.com/globalguerrillas/2008/09/journal-informa.html The journal in the link briefly describes the information cascade mechanism and then illustrates the negative impacts of information cascades on our lives by giving two real life examples. The first example explains why the financial industry can be so hopelessly lost. Some people followed the seemingly correct economic models in the beginning, […]
Competing in a market with network effect
Relevant link: http://www.flatworldknowledge.com/pub/gallaugher/41154# We learned from the class that how important the network effects is. When an information cascade forms, the rest of the crowds will easily follow previous people’s choice regardless of their own information. This sounds incredible. But when you see how this phenomenon happens in the real business world, you will be shocked […]
Growing Customer Bases with Groupon
Groupon was started in 2008 with the idea of having people purchase coupons for steeply discounted goods or services. The coupons would only be valid if enough people—a number that Groupon and each business agreed upon—bought the deal. Groupon’s business model, especially the reason why companies choose to work with Groupon, fits well with the […]
Information Cascade and A Night Full of Disappointment
During the past weekend, the last 4 countries that are going to play in the EURO 2012 European Championship were determined. The 8 runners-up in the qualifying stage played two-legged playoffs against each other and the 4 winners qualified: Portugal, Croatia, Republic of Ireland and Czech Republic. Since I am Turkish, I have been following […]
Modern Information Cascades: Accelerated by Social Networking
One of the most astounding features of modern social networking is the speed at which information travels. Not only has internet technology allowed people to communicate across the globe at the speed of light, but more and more social networking sites are encouraging users to stay plugged in all the time. With the increased connectivity […]
The Posting Process – Auctions in Baseball
Now that the World Series is over, the thoughts of baseball fans turn to the offseason, the period in which every team attempts to improve through free agent signings or trades. This year, another interesting element of the offseason will come courtesy of Japan’s Nippon Professional Baseball League (NPB), in the form of Japanese-Iranian pitcher […]
Network theorems associated with the success of Kindle Fire
Network theorems associated with the success of Kindle Fire Source: http://blogs.hbr.org/hbsfaculty/2011/10/ten-reasons-amazon-kindle-fire.html http://www.cs.cornell.edu/home/kleinber/networks-book/networks-book-ch17.pdf In the article, ’10 reasons Amazon’s Kindle Fire will Make a Huge Dent in the iPad market’, Sunil Gupta gives 10 reasons for why Kindle Fire will succeed. The first important reason is that Kindle Fire is much cheaper than iPad. The […]
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