Soccer Penalty Kick as a Three-strategy Game
Both the lecture and the book Networks, Crowds, and Markets use penalty kick in soccer as an example of mixed strategy Nash equilibrium in a two-player, two-strategy game. The book computes the probabilities of pure strategies in mixed strategy equilibrium from empirical data, and finds out that the predicted outcome from mixed strategies is almost […]
To cooperate or not to cooperate
While we were discussing The Prisoner’s Dilemma in class, we often emphasized a number of assumptions under which the game was being played. Players were making decisions independently and they were playing the game once, showing us that confessing is the dominant strategy. In the linked article, the example of howler monkeys is used to […]
Middle Eastern Women Pursuing College Education – Leveled Relationships on Graphs of Reference Groups
In class we have discussed graphs that represent networks of people, companies, countries and more. Initially we discussed simply relationships between two nodes, and then we added complexity by discussing positive and negative relationships. This, however, remains in many cases a large simplification of our world. In an effort to understand how these graph simplicities […]
NBA Small Ball and the Nash Equilibrium
It is abundantly clear from the Golden State Warriors’ championship season last year and historic 73 win season this year that small ball is here to stay. Under the direction of Coach of the Year Steve Kerr, the Warriors have terrorized the league the past two years with their most potent small ball lineup, the famous “Death Lineup”. […]
A Game: The Hospitality Industry
http://www.eyefortravel.com/revenue-and-data-management/pricing-decisions-factors-consider-increasingly-global-market-place There are a lot of factors to consider when making pricing decisions, especially in the hospitality industry. Prices of hotels are incredibly dynamic as revenue managers attempt to maximize sales and incoming cash flows by segmenting their customers through different amenities and prices. This article discusses key components that influence the pricing process such […]
Using Network Theory to Describe Middle Eastern International Relationships
Link: http://www.rferl.org/contentinfographics/infographics/25103887.html The Middle East is arguably one of the most complex regions of the world in terms of ethnic, religious and political conflict. Within the Middle East, there are many internal allies and enemies. For instance, Saudi Arabia, Jordan, and Egypt are enemies with Iran. In fact, Iran and Saudi Arabia are currently embroiled […]
“Prisoner’s Dilemma,” Is it really a dilemma?
Prisoner’s dilemma is a situation in which two players each have two options whose outcome depends greatly on the simultaneous choice. The police holding the interrogation tells each suspect that if one suspect, say A, confesses and the partner, B, does not confess, A will be realized. And if both confess, both A and B […]
The Republican Primary and Game Theory
Much of campaigning during a political campaign has to be done strategically; which demographic groups need to be targeted, which can be ignored, which opponent should be attacked, which opponent should be left alone, etc. In the fast-moving world of political elections where a slip of the tongue can cost an election, enemies can become […]
Game Theory and Market Efficiency
In the chemical industry, a unique market exists where the product is nearly the same among all sellers meaning competition is based on the assurance of supply and industry capacity. One of the sellers acts as a price leader while other firms may follow the leader in making decisions. This sets the stage for a […]
TV Channel Auction with Multiple Identical Permits
Source: link This is supposedly a real TV channel auction that happened in Greece two weeks ago described in the Reddit post linked above. The channel is auctioning off 4 identical permits to 8 participants. Each participant has a value Vn for a permit, and can only acquire 1 permit. Participants don’t know other participants’ values. […]
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