Game Theory 101 (#31.5): Comparative Statics without Derivatives

Game Theory 101: The Complete Textbook on Amazon: www.amazon.com/Game-Theory-10...
gametheory101.com/courses/game...
If you do not know derivatives, you cannot use the standard method of comparative statics on a game theoretic model. This lecture provides an alternative that only requires basic algebra. It works for simpler models, but it can cause problems with more complicated games.

[@PunmasterSTP]

Epsilon? More like movin’ on…through this example. Thanks again for all these videos!

[@azhargulzar9688]

Thanks for sharing such an informative video!

[@sinecurve9999]

You're Back! How Exciting!

[@Gametheory101]

Not for much, though. Probably not doing anything else until I have to make some corrections to my international relations lectures. Will probably do a completely new section on terrorism.

[@yizhang2510]

William, excuse me but you made a mistake, the X is the accuracy of kicking to the left, not kicking to the right.

[@lamortexotique]

You are right. I am quite confused about this at the moment.

[@dingli4557]

Is derivative really needed in this situation? x is positive, therefore, as x increases, (1+x) will increase, which in turn leads 1/(1+x) to decrease.

[@sharathkumar8422]

Derivatives are used to mathematically represent the slope or direction of movement of a given function. If a derivative is negative, that means the function is continuously decreasing and never increasing. If it's positive, then it starts of as an increasing function and can go down depending on the variable's value. A derivative is not necessary here but it would be needed in other cases to confirm one's doubts.

[@xMMLGx]

Do you have a video explaining von Neumann and Morgenstern preferences? Thank you for all the hard work you put in

[@Gametheory101]

Start with this one and work your way forward: kzbin.info/www/bejne/p6ixZmihr9KioK8

[@xMMLGx]

William Spaniel thank you