Economics 2182A/B Lecture Notes - Lecture 9: Nash Equilibrium, 24P, High Frame Rate
19 Nov 2018
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Announcements: the exam will cover chapters 1, 2, 3, and game theory. It will be both multiple choice and written answer questions: when we come back after the break, we will continue with the textbook chapters. If a pitcher always threw a straight fastball, the hitter would almost always hit. A changeup is a pitch that looks like a fastball but is slower. Since the arm movement is the same, the batter assumes it is a fastball so they swing with that timing but the ball arrives late. 23, 48 ie. if the batter bats a fastball, the pitcher should throw a changeup. If the pitcher throws a changeup, the batter should swing a changeup: since there is no cell with two best responses, there is no pure strategy nash. Re(cid:448)ie(cid:449): priso(cid:374)er"s dile(cid:373)(cid:373)a: there is a conflict between private interests and social interests. If they react to private interests (act selfishly), collectively they are worse off: sports example: flopping.
