Kevin D.

Recent Posts

Learning the basics of Game Theory

Posted by Kevin D. on 1/20/20 11:00 AM

Imagine that you and a friend are going to the movies. You like comedies more than action movies, while your friend likes action movies a lot more than comedies. If you go to see a movie alone, however, you’re probably not going to have as much fun, regardless of what type of movie you see. What is the optimal behavior for each person in this situation? At first glance, it seems hard to know exactly what will happen, since the payoff or reward that you receive will depend not only on which movie you go see but also what movie your friend decides to see.

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Tags: economics

Understanding Elasticity of Demand in Economics

Posted by Kevin D. on 9/18/19 11:00 AM

You may have heard in your econ class about a good’s elasticity of demand, or about “elastic” or “inelastic” goods. Consumers’ elasticity of demand is just a fancy way economists talk about how sensitive people are to changes in a good’s price.

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Tags: economics