Oligopoly – Game Theory and Dominant Strategy

Been covering this topic with my A2 class and found Jason Welker’s video very good at explaining Prisoner’s Dilemma and the dominant strategy. In recent years game theory has become a popular way of examining the strategies that oligopolists may adopt in a market. Game theory involves studying the alternative strategies oligopolists may choose to […]

Game Theory and why we go to a coronavirus lockdown

Michael Cameron posted a nice piece on his blog about this – Sex, Drugs and Economics. Game theory refers to the decision that a firm/individual makes depends on its assumptions about other firms/individuals. Ultimately this means that individuals will try and calculate the best course of action depending on how others behave. When we were […]

Game theory and drug taking in sport- Athletes, Organisers and Spectators

Drug-taking in professional sport has long been a major concern and there is no better example than seven times Tour de France winner Lance Armstrong who admitted to doping. Furthermore in the period from 1997 until 2002 among 64 world class 100 metre sprinters 25% have been convicted of doping and this doesn’t include two […]

Game Theory Lesson: Man Utd v Chelsea Penalty Shootout

Game theory involves studying the alternative strategies a person may choose to adopt depending on their assumptions about their rivals’ behaviour. The most significant research into penalty kicks has been done by Steven Levitt (co-author of Freakanomics) who co-authored a paper on mixed strategies when players are diverse in their decision making and studied 459 […]

Raw Game Theory – Split or Steal?

I got this clip from a tweet by Mo Tanweer of Oundle School in the UK. For those studying market structures it is a mistake to believe that ALL oligopolists face a KINKED DEMAND CURVE. Oligopolists may either: a) COMPETE VIGOROUSLY or b) COLLUDE (e.g. in cartels) or c) PLAY SAFE (as in Kinked Demand […]

Game Theory 2: Another Champions League Final

Having gone through the penalty shootout at 2008 UEFA Champions League Final I was informed by students that the AC Milan vs Liverpool final in 2005 was another penalty shootout worth looking at. As well as being a tremendous comeback by Liverpool it was interesting to observe how the penalty shootout progressed. I proceeded to […]

Greek Crisis – A game of chicken

The negotiations between Greece and the Eurozone financial chiefs represent a typical game of ‘Chicken’. Chicken readily translates into an abstract game. Strictly speaking game theory’s chicken dilemma occurs at the last possible moment of a game of highway chicken. Each driver has calculated his reaction time and his car’s turning radius, which is assumed […]