Monthly Archives: October 2011

Why you won’t win a price war

Today I will look at a simplified situation where two companies are battling over a natural monopoly. Whilst they are both competing the market isn’t big enough for either of them to make a profit. Once one of them drops … Continue reading

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Five ways to escape a prisoners dilemma

If you find yourself in a prisoners dilemma there are some ways you can try to get out of it. 1 – Communication In the normal definition of the problem the two prisoners are not able to communicate with each … Continue reading

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Game theory and segregation

Would you rather live is a neighborhood where everyone shares your skin color? Most people would say that they are not racist and would prefer to live in a mixed neighborhood. If this is the case then why are most … Continue reading

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