AP Economics – 11/27/18
I. Bellwork Q&A
A. https://www.cnbc.com/2018/06/07/opec-meeting-on-june-22-likely-to-see-disagreements.html
- –Why do some oil producing nations prefer to restrict output to keep prices high?
- –Why do others prefer a lower price strategy?
- –How does the article illustrate the difficulty of maintaining collusion?
II. Objectives:
- Use game theory to enhance your understanding of oligopoly
- Analyze a prisoners’ dilemma using a payoff matrix
- Determine dominant strategies and Nash equilibria in a variety of games
III. Discussion: Game Theory Pages 648-655
- Prisoner’s Dilemma
- Game Theory
- Payoff & Payoff Matrix
- Dominant Strategy
- Nash Equilibrium/Non-cooperative equilibrium
- tit for tat and tacit collusion.
- Game Theory and Oligopoly: Crash Course Economics #26
IV. Classwork: on iLearn
- https://www.youtube.com/watch?v=AOEbJF0k8vM
- Worksheets 65.1, 65.2. & 65.3
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