Sunday, March 20, 2011

Pat Angerer

Here's me trying to get Colts Star, Pat Angerer to be a guest speaker in my classroom on game theory.

Zero Sum Game

This is a zero-sum game.  There's a winner and a loser.  This game is also played simultaneously with the advantage going to the first mover.  The dominant strategy is to "draw" and dominates the strategy "Don't draw".  This game has a Nash equilibrium. If one of the actors will draw no matter what negotiations take place, then there's a pure strategy to draw.

Do you think this game is a variation of the Hawk-Dove game?

Friday, March 18, 2011

Nim and Pugilistic Question #3

Game theory and economics.  Here's the game, NIM.  Here's the solution.

Game theory assumes that the actors behave rationally and strategically.  It is also assumed that actors receive utility from their interactions.  So I'm walking down the hall following the person ahead of me when they suddenly stop.  I quickly change my course of action.  In both cases we maximize our utility but we are interacting simultaneously.  My question is, when preferences are quickly changing the choices that are made in real time, how can one behave strategically?

Wednesday, March 16, 2011

Pugilistic Question 2

The long-run ATC curve is shown as the envelop of the firm's short run ATC curves.

My question is:  If there are no fixed costs in the long run, how can the long-run ATC curve be the envelop of the short run ATC?

Pugilistic Question 1

When I teach production costs, I teach that the average total cost curve looks like a "U".  The left part of the ATC curve shows fixed costs being spread out over an increasing range of output.  The right part of the ATC curve shows diminishing marginal returns and variable costs.  In the theory of perfect competition, prices are driven down to the productive efficient point or the lowest part of the ATC curve and there are no fixed costs.

My question is:  Why do students need to show the left part of the ATC curve?

Perfect Competition Worksheet

Here is a problem set that will teach all of the concepts of perfect competition.

I wrote this for the Successful Practices Network as a Gold Seal Lesson.  Let me know what you think.