Economics: Game Theory, Competition, Elasticity

Microeconomics is packed with applications to our everyday life - this course will help you connect the dots
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  • Lectures 42
  • Length 6 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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About This Course

Published 4/2016 English

Course Description

This is a zoom-in, zoom-out, connect-the-dots tour of Game Theory, Competition and the Elasticity of Demand andSupply.

Let's parse that

  • 'connect the dots': Economics is deep - even the simplest concepts in Micro-Econ 101 are missed by leaders in business and politics, and commit basic errors in judgment. This course makes sure that won't happen to you.
  • 'zoom in': Getting the details is very important in economics - you really have to understand the nitty-gritty of graphs and intersecting curves and lines. There is a lot of meaning in those details
  • 'zoom out': The real value of economics, particularly microeconomics, is in taking seemingly over-simplified models, and then applying insights from those over-simplified models to the world at large. This course makes sure you can go from the specific to the general.

What's Covered:

  • Game Theory: Discounting and price wars, Prisoner's dilemma and nuclear arms races, Winner-takes-all games and the commercialization of sport.
  • Competition: Perfect competition, monopoly and monopolistic competition
  • Firm Costs: The deep meaning underlying total and marginal costs, and the least-cost principle
  • Utility and Consumer Equilibrium: Indifference curves, and relating price and value. Income effects, and deriving Demand curves from indifference curves
  • Applications of Elasticity: Modeling taxes, the troublesome economics of agriculture, minimum wages. 
  • Elasticity, Demand and Supply: Defining and using elasticity. Linear Demand Curves and a neat trick. Demand and Supply demystified.

Talk to us!

Mail us about anything - anything! - and we will always reply :-)

What are the requirements?

  • This course assumes no prior knowledge of economics, finance or accounting

What am I going to get from this course?

  • Apply Game Theory to decide whether to be adversarial or co-operative in real-life situations
  • Determine how best to price products or services that you are selling
  • Decide the kind of cost structure a firm or enterprise should have, relative to its competitive landscape
  • Model demand, supply and the effects of income, government regulations and technology

What is the target audience?

  • Yep! Business majors and aspiring MBAs
  • Yep! Finance professionals who are rusty on economics, and its role in how firms compete and operate
  • Yep! Strategy professionals looking for a theoretical grounding in concepts like game theory and elasticity
  • Yep! Aspiring entrepreneurs eager to understand how to react to competition

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: You, Us & This Course
02:28

This is a zoom-in, zoom-out, connect-the-dots micro-economics course. It starts with Game Theory, then plunges into Elasticity, Demand, Supply and the theory of costs and competition.

Section 2: Game Theory
16:20

The duopoly game has an important lesson - the more loyal your customers are, the less you need to discount. Game Theory shows how.

10:12

In the absence of customer loyalty, price becomes the weapon of choice - and leads to a destructive equilibrium.

11:03

Even enemies should talk, and trust - even if just a little bit. That's rational for both.

14:12

Game Theory addresses the thorny issue of the commercialisation of sport

Section 3: Demand
06:55

The more something costs, the less demand there is for it

09:12

The Law of Demand seems simple enough - why do so many folks lose sight of it? Oh, and they usually live to regret it.

06:33

Sometimes, the demand for luxury goods is self-perpetuating

06:35

Inferior goods and luxury goods share one dark similarity

07:21

Shifts in the demand curve are different from movements along the demand curve

08:16

Tea and coffee are substitutes; fish and chips are complements

Section 4: Supply
06:07

Higher prices attract more producers

05:59

The Law of Supply seems very intuitive, but it is ignored by many - at their own peril! Let's look at home prices, oil prices, and interest rates as examples of the law of supply.

12:50

Input prices, technological change and government interventions can shift the supply curve quite drastically

08:58

Markets 'clear', i.e. demand and supply curves combine magically, based on the interplay of consumers and producers

Section 5: Elasticity
11:06

Elasticity measures how sensitive to price the demand for something is

08:30

Perfect competition and predatory producers - let's talk about them both

07:05

Young fast-growing firms would do well to remember this: revenue is maximised when elasticity is one.

03:31

Elasticities for upward-sloping demand curves carry a different sign than usual elasticities.

07:39

The concept of elasticity is easily and widely generalizable.

09:06

Linear demand curves are worth discussing in detail for a couple of reasons. 

Section 6: Applications of Elasticity
10:26

When the government imposes a tax, who pays - producers or consumers? Elasticity helps answer that question.

08:18

The economics of agriculture are terrible - understand why.

07:24

Minimum wages usually 'work', i.e. they serve their intended purpose. Elasticity explains why.

07:20

Unlike minimum wages, price controls usually don't work, i.e. they do NOT serve their intended purpose. Once again, elasticity explains why

Section 7: Utility
14:54

There is no such thing as a free lunch - and too much of a good thing is no good. Economics explains

10:13

Water or diamonds? That depends whom you ask.

14:15

What should we spend our money on? Indifference curves hold a clue

10:33

Demand curves and income effects can both be modeled using indifference curves.

04:38

Consumers usually have a pretty sweet deal.

Section 8: Firms
11:44

Nothing comes from nothing. Land, labor and capital go into making anything worth buying.

10:01

Bottle-necks in production have an underlying explanation in economics

04:49

What should a firm spend its money on?

05:04

Is big beautiful? The answer is - it depends on the returns to scale.

Section 9: Costs
08:44

Business models are driven by cost structures. Understand where these come from.

08:07

The intersection of the average and marginal cost curves is the minimum average cost that a firm can operate at. 

08:27

Horizontal, vertical, backward-bending - let's talk about them all.

Section 10: Competition
05:46

In the long run - we are all dead.

10:27

Perfect competition can be brutal. Understand the take-it-or-leave-it dynamics of such business

06:55

The optimal strategy for a firm in a perfectly competitive environment is to tweak its cost structure until P = MC

10:04

 The prize of perfect competition is to end it and move to monopoly. Not so fast, though - the government has other ideas.

03:40

A Nokia phone is a phone. An Apple iPhone maybe THE phone. 

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Instructor Biography

Loony Corn, A 4-person team;ex-Google; Stanford, IIM Ahmedabad, IIT

Loonycorn is us, Janani Ravi, Vitthal Srinivasan, Swetha Kolalapudi and Navdeep Singh. Between the four of us, we have studied at Stanford, IIM Ahmedabad, the IITs and have spent years (decades, actually) working in tech, in the Bay Area, New York, Singapore and Bangalore.

Janani: 7 years at Google (New York, Singapore); Studied at Stanford; also worked at Flipkart and Microsoft

Vitthal: Also Google (Singapore) and studied at Stanford; Flipkart, Credit Suisse and INSEAD too

Swetha: Early Flipkart employee, IIM Ahmedabad and IIT Madras alum

Navdeep: longtime Flipkart employee too, and IIT Guwahati alum

We think we might have hit upon a neat way of teaching complicated tech courses in a funny, practical, engaging way, which is why we are so excited to be here on Udemy!

We hope you will try our offerings, and think you'll like them :-)

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