Lecture 4 - Best responses in soccer and business partnerships |
We continue the idea (from last time) of playing a best response to what we believe others will do. More particularly, we develop the idea that you should not play a strategy that is not a best response for any belief about others' choices. We use this idea to analyze taking a penalty kick in soccer. Then we use it to analyze a profit-sharing partnership. Toward the end, we introduce a new notion: Nash Equilibrium.
Strategies and Games: Theory And Practice. (Dutta): Chapter 5
Strategy: An Introduction to Game Theory. (Watson): Chapters 6-9
Thinking Strategically. (Dixit and Nalebuff): Chapter 3, Sections 4-6
Yale University 2008. Some rights reserved. Unless otherwise indicated on this page or on the Open Yale Courses website, all content on this page is licensed under a Creative Commons License (Attribution-NonCommercial-ShareAlike 3.0)