After enjoying a weekend watching my favourite team win the FA Cup, my mind quickly turned towards next season and the possible transfer targets. Furthermore upon reading a Mourinho interview where he outlined some of his potential summer buys I was interested to understand how managers plan transfer market strategies. Therefore I’ve decided to post a blog incorporating another football analogy with an enlightening economic lesson. Some of you may be aware of two things:
1. The impending World Cup and transfer market dealings that come afterwards.
2. Game theory, a behavioural economic theory based on strategic decision making amongst rational agents. A theory told superbly by the Russell Crowe film – A Beautiful Mind on economist John Nash’s life.
Now to our transfer market problem. Let’s assume we have two teams, Arsenal and Chelsea who have a similar problem – to buy a striker(s). Both teams have a budget…
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