Best responses in soccer and business partnerships
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Best responses in soccer and business partnerships
This lecture introduces the formal definition of a best response strategy within game theory, using the example of penalty kicks in soccer. It then applies this concept to analyze profit-sharing partnership games and previews the foundational concept of Nash Equilibrium.
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.