Game Theory 101 Full Course - Game Theory 101 (#31): Comparative Statics

Game Theory 101: The Complete Textbook on Amazon: https://www.amazon.com/Game-Theory-101-Complete-Textbook/dp/1492728152/ http://gametheory101.com/courses/game-theory-101/ Does a striker aim to his weaker side more or less frequently as his accuracy improves on that weak side? Rather than just find equilibria, we should also analyze how equilibria change as a function of the game itself. We use comparative statics to study such changes. This lecture introduces the concept of comparative statics and goes through their method of calculation. Unfortunately, this is the one lecture where calculus is necessary. If you have a quarter or semester's worth of calculus, you will be fine; we only need to calculate simple derivatives here. The lecture also includes a non-technical proof for the claim in case you have no calculus background. Comparative statics are what make game theory interesting. If you need more practice running through the process, check lesson 3.4 of the textbook. I cover five examples in great detail. You should have a hang of it by the end.