FarmVille Period 2 Results

Market A

Market B

FarmVille Period 1 Results

Market B Results

 

Market A Results

Please note, the video reverses markets A and B owing to a transcription error on my part. All references to market B are for market A and vice-versa. Apologies for the glitch.
FarmVille FAQ

Contact Information

Apparently some of you are very shy since there are only 3 teams with contact info on the board at present. Team Don't H8 the Playa kindly asked me to prod all of you to provide contact information. Apparently, they're ready to wheel and deal and looking for folks to trade with. To provide your info, go to the game theory P&L and add it to the "contact info" column on the spreadsheet. The direct link is:

Link: https://spreadsheets.google.com/ccc?key=tJkfldzw-qQHHuX3GLk_4uw#gid=0

McCain-Schumer Debrief

The key variation in the experiment turned on the timing of the game or, equivalently, the disclosure policy of Pharma. When a game is sequential, there is a chance to influence the rival's move with your move. In a simultaneous game, this is not possible. While it is normally to your disadvantage to reveal private information, when that information is your action choice, disclosure can be advantageous owing to this strategic influence.

Class #4: Key Takeways

Class #4 ended the unit on Look Forward, Reason Back. Here, we saw how the tools of game theory could be used to determine the appropriate course of action in the face of the threat of entry. In the case, Coors could opt for a proactive strategy, advertising in advance of the entrant, or a reactive strategy, advertising only if the entrant came into the market. Instinct would suggest that the proactive strategy is better, but game theory illustrates the possibility that the reactive strategy is the right one. The key condition is whether Coors will carry through with its threat to advertise if AB enters. If this is not credible, then Coors needs to take steps to make it credible.

The broader point is that simple tools of game theory can be extremely helpful in systematically analyzing strategic situations and determining the right course of action rather than relying purely on instinct. 

FarmVille

For the next couple of weeks, we will be running the game Farmville outside of class. This game illustrates the connection between game theory and competitive advantage in strategy. There will be two markets, one consisting of 8 teams and the other of seven teams. Please read the instructions in advance of class and I'll explain in class.

Road Map: Classes 6 and 7

In class #6, we will discuss how to analyze games with simultaneous moves and highlight a number of "building blocks" for studying strategic situation. Please read the class notes in advance. Class #7  introduces the idea of dominant strategies. Here, we will be doing an experiment simulating the radio spectrum auctions.