Discussion (W6)

A key element of Game Theory is Interdependence. which may be in Demand or Supply.  (Or both, in a given market.) 

The simplistic assumptions when microeconomics is introduced is that consumers as individuals seek to maximize their well-being or satisfaction, while firms seek to maximize their profits.  However, it is a bit more complex, since both consumers and firms are often interdependent.  At its most extreme, this interdependence can be seen in Brand Fetishes, where people "must" have or use this or that brand to be seen as prestigious or a member of the "in-group."    

First, watch this Game Theory YouTube video. This is director Ron Howard's fictional version of how John Nash (played by Russell Crowe) invented game theory.  (Note that the video is not quite accurate in describing Nash Equilibrium, but it does a good job helping visualize interdependence.) 

Then in a posting of a paragraph or two, give an example of interdependence in Demand or Supply in a business or organization that you are familiar with.  Note any elements from Game Theory that might apply.  Please post by Friday, then respond to two or more classmates by Sunday.