The World Cup is finally underway. At long last, soccer fans can don their team colors, head down to the local pub — and begin collecting data to test economic theories.
Or at least, some of us will.
For instance, I’m interested in penalty kicks. In addition to being an exciting part of the game, penalty kicks present an opportunity to test an important idea in economics: the Nash equilibrium.
The economist John Forbes Nash Jr. analyzed how people should behave in strategic situations in which it is not optimal to repeatedly make the same move — like the children’s game rock, paper, scissors, in which selecting one move again and again (rock, rock, rock …) makes you easy to beat.… Seguir leyendo »