Oligopoly and Game Theory- Micro Topic 4.5
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- Опубликовано: 12 сен 2024
- My 90 second explanation of oligopolies and game theory. Understanding how to read the chart is the first step. The numbers in the left of each square are for the firm on the left. The numbers on the right are for the firm on the top. Learn how to identify the dominant strategy with this video and then practice on the next video. Please keep in mind that these clips are not designed to teach you the key concepts. These videos are a review tool to help you better understand what you learned in class.
Need help? Check out the Ultimate Review Packet for FREE: www.acdcecon.c...
13 years later and your content is still helping students. You are a legend straight up. I have my exam tomorrow on this and I was really confused, now I feel confident on the game theory portion of my exam in a few hours. Thank you 🙌
Un-real - 11 years later, the best explanation of how to predict behaviour of game theory in less than 2 minutes. Mind = blown
Has anyone else noticed that Mark Cuban is teaching us about microeconomics?
haha yeah i guess he does sort of look like him
Exactly what I thought
14 years later i have my exam tomorrow its crazy man thank you
When the homies talk about Chegg, Quizlett, and ChatGPT, I be out here with the classics.
Awesome Mr Clifford, your videos are timeless!! Just awesome, sir!
4 minutes before my AP exam and I NOW understand oligopoly
You should be replacing all Econ professors (in the classroom) on earth :D Thank you
Background music is great, Mr. Clifford. Gets me super pumped! ;) Loving the videos. Thanks!
i love your videos!! you use the simplest and clearest way to explain econs =) it's super helpful!!!
This was so helpful. You seem like the coolest teacher ever!
yo after 11
years ho did this video help u
YOU ARE SO AMAZING! I cannot explain in words how thankful I am! :)
yo after 10 years ho did this video help u
Great content! You are saving my butt! Thanks sir. I also bought your package, great material! ❤️
We need an updated version of this
was he filming this on a nokia
@Dafni Suresh thats why its funny :)
I appreciate you for your sense of humor
This is from 12 years ago
Have some respect for Mr. Clifford.
Thank you! This cleared up a lot of confusion!
thanksss! I had a hard time understanding kinked shaped graph but then i remembered what can happen to demand when its substitute's price changes
Why did you put music in the background? It's quite distracting at least to some of us
"ACDC" econ... hint: the name XD
This video looks older than me but I bet it will still help me on my test!
I don't get it why don't clifford have a dominant straegedy
Clifford Taxi doesn't have a clear-cut strategy. In case one, they should maintain the price to get a better profit, but in case two they should lower their price to get a better profit. Thus, they don't have a clear dominant strategy.
Can we say to maintain is the Nash equilibrium for both ???
is the last part a nash equilibrium?
THE.BEST.ECON.PROF.EVER
Were there other Game Theory Videos here previously? I seem to recall a more modern game theory video being available with newer production values. Did they get moved?
Might be an easy concept, but just wondering, how would you figure out the firms DAILY profit?
Yes maintain maintain is the Nash Equilibrium in pure strategies.
I love the way how you jump into the screen at the beginning of the video!!!! haha thanks for the video, it's awesome!
Your videos helped me go from a 2 to a 4 :)
Ok, so I understand that Clifford does not have a dominant strategy, but why will they maintain their price if they can get more money when they lower it? Why do they have to do what ACDC does?
+Moe Medina Great question. Remember, ACDC will always maintain since that is their dominate strategy. So Clifford won't get $150 if they price lower. They will only get $130. It would be better if they maintain and get $140. Does that make sense?
Wouldn't clifford want to lower because they will get more money than their competitor? Since there are only a few companies in an oligopoly, doesn't it make sense to get rid of competition?
Technically you're not getting rid of the competition since both are making a profit. If one made a profit and one underwent losses, I would agree, but that isn't the case here. Both companies are making a profit.
If Clifford lowered their price they only get $130. The only time they have an option to get $150 is when ACDC lowered their price. However, ACDC won't lower their price because they would only get $100 instead of the $150 they are currently getting by maintaining. Thats why Clifford doesn't have a dominant strategy as that would only happen if ACDC lowered their price which they won't do.
Thank you, this is going to really help for my micro exam in less than 2 hours. GO GATORS!
university of Florida? ill be attending there
THIS MAN IS A FU**ING GOD!!!! my professor went over this 3 lessons in a confused me to death, and u explained it in 90 seconds
Simple and clear. Thanks
I'm going to name my first child "Clifford" Second name "90Seconds"!!
really great!!!!
Holy mother of god .. understood
In this case where both agree to maintain, Can i call that the Equilibrum
HEYYY are you the guy from crash course Econ?
You are a life saver ❤️
Question number 3 is the Nash Equilibrium?
But in a duopoly market share is all important. Clifford should take the $10 profit reduction (lower their price) in order to take market share from ACDC. When they are more powerful than ACDC, they can destroy them completely.
Unless the anti-trust people get into it.
Excellent. I understand now!
God bless man, really appreciate the help :)
What if the other firm wants to hurt the firm that wants to maintain, they would take a $10 loss while the other firm would take a $30 loss? Does this ever occur?
Wow ! lovely ! v nice !!
Is 140,150 nash equilibrium?
What if clifford lowers to make a higher profit than ACDC then uses that to invest and eventually push ACDC out of the market?
Forgot to mention that that box is where the Nash Equilibrium is
music is really distracting.... otherwise, really good and quick explanation.
Wait, I still don't quite understand why clifford doesn't have a dominant strategy..
Because it's not like mountain/lower is better in both scenarios. One is better in one, the other is better in the other. For example, ACDC has a dominant strategy because they make more maintaining rather than lowering, both times. If Clifford lowers, ACDC makes more money maintaining than it does also lowering. If Clifford maintains, ACDC makes more money maintaining that it does lowering. In both cases ( both of Clifford's moves), ACDC makes more money maintaining. Now, clifford doesn't have a dominant strategy because in one case, maintaining is better, and in the other lowering is better. A dominant strategy means it's better to only maintain or only lower, no matter what the other company is doing.
helpful!
Phenomenal video! If you're keen, I'd recommend a book with congruous material. "Game Theory and the Pursuit of Algorithmic Fairness" by Jack Frostwell
Great explanation but the loud music is really distracting and frustrating
I can dig it
I hope all ur wishes come true
I LOVE YOU JACOB
omg! so useful!
Thank you!
...a little confused, you say to lower $120 to $150, but that's increasing,
the music is completely distracting
Mr. Magavern FTW!
Yoy are a god thank you so much
and what happens when there is a collusion between the two firms?
dam! i understand it now!
song?
sometimes I got the feeling that the only thing that makes my master complicated are bad professors.
I will build a temple for this man in India someday
my teacher spent 55 minutes explaining this, i didn't get it. he spends 2 minutes i understand
goat
I love you
Can’t see the board clearly , oh no
i know u really amazing but seems its too fast for me (non-english speaker) to understand huhuhuuh, anyway i will try cause i dont understand this lesson at school too :)))))), thanks a lot
He’s coherent
He’s keen
He’s econ extreme
He’s a clever man
Econ teacher number one
Understand?
Who watched beautiful mind here
1:30 - 90 seconds is up!
dad
.. concept in 60s (+ 30s)
DIGGITY WAHOOOOOOOOOOO
Gunners till we die
Slow down, man.
but don't agents undercut competitors at their own expense every day? Don't they do it out of spite, or to establish long term competitive advantage by pushing others out of the market, or simply out of self defeating pride, but do it never the less? This is to say nothing of the use of game theory as a way to predict what your 'competitor' will predict about your predictions. Maybe this man is 'fu-ing' GOD. I can't trust that either. Then again, if this s just an academic game, well, have fun.
calm down
You explain to fuckn fast man
Fuck everything...
uhhhh
YOU LIED YOU SAID IT WAS ONLY 60 SECONDS!!
Too fast man