Lecture 4 - Best Responses in Soccer and Business Partnerships

We continue the idea (from last time) of playing a best response to
what we believe others will do. More particularly, we develop the
idea that you should not play a strategy that is not a best
response for any belief about others’ choices. We use this idea to
analyze taking a penalty kick in soccer. Then we use it to analyze
a profit-sharing partnership. Toward the end, we introduce a new
notion: Nash Equilibrium.