Schnupperuni 2017

Ein Beispiel einer Vorlesungsstunde für potentielle angehende Studierende. Es geht um rationales Herdenverhalten. Wenn ein Produkt von vielen Menschen gekauft wird, heißt das dann, dass es ein gutes Produkt ist? Warum gehen wir lieber in das volle Lokal? Und was bedeutet das für andere?

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Economics on the beach IV: welfare optimal pricing – a model

This post builds on the previous two, economics on the beach II and economics on the beach III. I have started this, so I need to finish this now. In this post I will finally try to build a small model in which it is true that “charging a perhaps even substantial price for beach access would be welfare improving for all potential beach goers”.

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Economics on the beach III: towards discussing welfare optimal pricing – first steps in building a model

I will try and build a small model in which it is true that “charging a perhaps even substantial price for beach access would be welfare improving for all potential beach goers”, a claim I made in my last post. In this post I will take a first few steps in this direction, first only demonstrating my claim that beaches potentially suffer from the “tragedy of the commons” before I will tackle the main question in the next post.

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Penalty taking: some game theory and hypothesis testing

One of my colleagues sent me an article in the Financial Times from March 17 entitled “How to save a penalty: the truth about football’s toughest shot. On star goalie Diego Alves, game theory and the science of the spot kick.” I found the article interesting for two reasons.

  1. It has a fun discussion of the psychology and game theory of taking penalty kicks. It points to the paper by Ignacio Palacios-Huerta in which he shows that professional soccer players take penalties in a way that is consistent with Nash equilibrium (or minmax) behavior. The FT article also includes an interesting interview with Ignacio Palacios-Huerta and his “analysis of ideal penalty-taking strategies for the then Chelsea manager Avram Grant before the Champions League final against Manchester United in 2008.”
  2. The FT article highlights Diego Alves, Valencia’s goalkeeper, and argues that he is particularly good at stopping penalties. The FT article argues that Diego Alves’ stopping record (he stopped 22 of 46 penalties – a very high number compared to the average stopping rate of 25% of all goalkeepers combined) cannot be explained by chance alone.

In this blog post I want to comment on the 2nd point. It is actually wrong. And it is wrong for an interesting reason. Moreover the mistake made is very easy to make and is a very common one.

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Rationales Entscheiden bei Radikaler Unsicherheit

Für diejenigen, die es verpasst haben oder es noch einmal sehen wollen! Hier ist ein Video meiner Antrittsvorlesung an der Universität Graz, vom 19. Oktober 2016:
Rationales Entscheiden bei Radikaler Unsicherheit“. Der Vortrag beruht auf meiner Arbeit “Abraham Wald’s Complete Class Theorem and Knightian Uncertainty“.

Resolving a family conflict with microeconomics

I was recently able to help family friends, a father and daughter, with a little family conflict using a bit of microeconomics. The problem was this. The daughter, let’s call her Marianne (not her real name) needed dental work. Her Austrian dentist was fully prepared to fix Marianne’s dental problem for a fee in the neighborhood of € 1000. Marianne’s father, let’s call him Franz (not his real name), tends to go to a dentist in a neighboring country and is very happy with his service there. He ascertained that his dentist would charge something in the neighborhood of € 100 for the same dental work. Marianne is a 20 year old student and still relies on her father to pay things such as dental bills for her. When I met them recently they were arguing over which dentist she should go to. In what follows I will explain their positions, and how a little bit of microeconomics helped with the resolution of this conflict, why it worked, and when it would not necessarily work.

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