A back-of-the-envelope "economic analysis" of why you should go to the K-State Game
By now you've heard that they are practically giving you the keys to the stadium to go to the Tuesday night game against K-State. Well, they're giving away about $100,000. The question remains, though, is it worth it? Here's a (very) quick look at why you should check out tomorrow night's game. For the more rigorous statisticians out there here are some assumptions I'm making: 1) you get a new draw at winning a prize every time one is handed out. 2) 10,000 students will be in attendance and eligible for a prize 3) I'm not treating hot dogs as a prize. I don't care how hungry of a student you are that's not what is prying you away from the new Torchy's and to the game.
On to the fun stuff, here is what you can expect to win if you go to the game: $6.52.
Here's how I calculated that: Assume you have a 1 in 10,000 chance at winning each prize. Thus, you have a 1/10,000 probability of winning, say, the big prize of $10,000. Multiply that out and you can "expect to win" $1. Or in other words, you would be indifferent about spending a dollar to go to the game if you have a 1/10,000 chance at $10,000 (expected cost = expected benefit). Using this type of logic you can add the expected payoff from each prize and voila you arrive at $6.52.
So, for you to be indifferent between going to the game and pretending to do homework while you watch a livestream of the action it has to be that it costs $6.52 to attend. Here's the kicker, the athletic fee is currently $75 for a semester. Assuming you average the fee across all of the sporting events you go to then you need to attend 11 and a half games for it to be worth your money. So, if you've already been to a few of games then you are well on your way to making this game pay for itself. If not, then make sure to attend this game and a few soccer, tennis, or baseball games. Either way, have a great time breaking a student record. Wreck'em.
P.S. my prediction TTU - 67, K-State - 59
Actually, it's game theory about pizza. In this article from the NY Times the story of three pizza sellers in New York is told. This type strategic business behavior, or game, is known as a Bertrand pricing game. The basic gist is this; each player's dominant strategy is to be the low cost pizza provider. So, as you would assume, the lowest price possible prevails. This is great for us consumers, but what about the producers? What is happening to consumer and producer surplus as the Bertand game plays out? Do you think it is fair for the pizza sellers to keep slashing their prices? What if this was Dominos vs. a local pizza seller, would you still think it was fair?
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