To Auction or Not to Auction
Monopoly has been a common household board game since its origin in 1903. Despite its status as a family-oriented game, however, many of its rules and strategies model more complex aspects of economics. One such aspect of the game, the auction, recently went viral as a rule regarding auctions became more widely known to the average […]
Game Theory in a variety of fields: Prisoner’s Dilemma & Economics
One of the most popular methods to find real criminal is Prisoner’s Dilemma. In order to understand easily, here is an example from web, Two members of a criminal gang are arrested and imprisoned. Each prisoner is in solitary confinement with no means of communicating with the other. The prosecutors lack sufficient evidence to convict […]
Shall we make some profits? (Game Theory and the Stock Market)
As we learned in class, game theory is ubiquitous in our lives. We can use game theory to guide our daily strategic decisions. So why not use game theory to generate positive returns on the stock market as well? Well, we should use game theory to maximize our financial success. In fact, “A Fundamental Game […]
Game Theory, Super Bowl XLIX
Article URL: http://www.economist.com/blogs/gametheory/2015/02/applying-game-theory Standing one yard away from the end zone, the Seattle Seahawks had three plays left to secure their victory. Seahawks’ coach Pete Carroll instructed his team to pass the ball, even though running the ball with their star player, Marshawn Lynch, had a higher probability of success. This may be due to the […]
Emotionless Games: A guide to ruling Westeros [Spoiler alert]
Game of Thrones has been widely praised and criticized for its raunchiness. With an amount of blood, drugs and sex that rivals a 70s punk rock band it’s easy to see why. However a criticism that is said among lovers and haters alike is that there are too many deaths, each one bloodier than […]
Wise Crowds
I came across an interesting article on research related to networks and how information can be distributed within networks. A few years back, researchers from MIT demonstrated that with large networks of people, eventually they gain an accurate understanding of information distributed among them. Despite individual members who can only observe their nearby neighbors, eventually […]
Game Theory within the Apple-Samsung Rivalry
Apple and Samsung have been rivals in the cellular phone industry for almost a decade. Apple released their first iPhone model in 2007. This was a huge challenge to Samsung who had been making cellular phones since 1985. The problem was that Apple created a completely innovative product and began to dominate the market with […]
Game Theory in the Health Care Industry
The United States spends significantly more on health care than any other developed country. It’s not like Americans have particularly poor health compared to other populations. If anything, the U.S. demographics and health behaviors suggest that we should have lower health costs. Furthermore, compared to other developed nations, the United States records relatively low numbers […]
Using a Wartime Tactic when Raising Kids
Children generally always want something. If a family has 3 kids, how do the parents handle all three kids’ desires? Naturally, game theory may come into play when the three kids argue for something they want. As the parent, it is necessary to try to control the kids without making yourself seem indecisive or, for […]
Bringing Game Theory to Statistics: Hypothesis Testing & Error
Statistical testing founds itself upon ideas of game theory. Every time one conducts a test for statistical significance, they consent to play a game of odds. The predetermination of null and alternative hypotheses necessitates the definition of a value alpha (α), which defines the chance of rejecting the null hypothesis by random chance. Type I […]
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