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ECON 159: Game Theory

Lecture 04 - 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. (from oyc.yale.edu)

Lecture 04 - Best Responses in Soccer and Business Partnerships

Time Lecture Chapters
[00:00:00] 1. Best Response: Penalty Kicks in Soccer
[00:15:14] 2. Best Response: Issues with the Penalty Kick Model
[00:24:06] 3. Best Response: Formal Definition
[00:29:59] 4. Externalities and Inefficient Outcomes: The Partnership Game
[01:07:23] 5. Nash Equilibrium: Preview

References
Lecture 4 - Best Responses in Soccer and Business Partnerships
Instructor: Professor Ben Polak. Resources: Blackboard Notes Lecture 4 [PDF]. Transcript [html]. Audio [mp3]. Download Video [mov].

Go to the Course Home or watch other lectures:

Lecture 01 - Introduction: Five First Lessons
Lecture 02 - Putting Yourselves into Other People's Shoes
Lecture 03 - Iterative Deletion and the Median-Voter Theorem
Lecture 04 - Best Responses in Soccer and Business Partnerships
Lecture 05 - Nash Equilibrium: Bad Fashion and Bank Runs
Lecture 06 - Nash Equilibrium: Dating and Cournot
Lecture 07 - Nash Equilibrium: Shopping, Standing and Voting on a Line
Lecture 08 - Nash Equilibrium: Location, Segregation and Randomization
Lecture 09 - Mixed Strategies in Theory and Tennis
Lecture 10 - Mixed Strategies in Baseball, Dating and Paying Your Taxes
Lecture 11 - Evolutionary Stability: Cooperation, Mutation, and Equilibrium
Lecture 12 - Evolutionary Stability: Social Convention, Aggression, and Cycles
Lecture 13 - Sequential Games: Moral Hazard, Incentives, and Hungry Lions
Lecture 14 - Backward Induction: Commitment, Spies, and First-Mover Advantages
Lecture 15 - Backward Induction: Chess, Strategies, and Credible Threats
Lecture 16 - Backward Induction: Reputation and Duels
Lecture 17 - Backward Induction: Ultimatums and Bargaining
Lecture 18 - Imperfect Information: Information Sets and Sub-Game Perfection
Lecture 19 - Subgame Perfect Equilibrium: Matchmaking and Strategic Investments
Lecture 20 - Subgame Perfect Equilibrium: Wars of Attrition
Lecture 21 - Repeated Games: Cooperation vs. the End Game
Lecture 22 - Repeated Games: Cheating, Punishment, and Outsourcing
Lecture 23 - Asymmetric Information: Silence, Signaling and Suffering Education
Lecture 24 - Asymmetric Information: Auctions and the Winner's Course