Applying Game Theory in A Level Economics

[@jmicycle]

Playing game theory with the examiner: "I'll kill myself if you don't give me high marks." Nash equilibrium: your conscience isn't ruined and I get high marks. Win Win. .

[@careair5516]

Internet is a classic example of game theory with positive outcomes for both parties. Even possibly the third party.

[@SalPKhan]

Great vid! Also, why do price wars badly damage small firms?

[@alexcameron3629]

They are unlikely to have average costs as low as larger firms often benefit from economies of scale. So they cannot compete at such low prices.That is why predatory pricing may be used to force out small competitors

[@mistyrahman7441]

also small firms do not have the reaources to compete with the large firms.

[@jackcarnie6488]

Larger firms are also able to sell items at a loss in the short term since they may have either a lot of money saved or could sell stocks and use this to drive small firms out of the market then raise prices when competitors go out of bushiness.

[@mistyrahman7441]

+Jack “The Protagansist Gamer” Carnie yupe....loss leaders