The Park Place Economist


A fascinating real-world example of microeconomic theory can be used to analyze the above "Cleaver" family. The thought process behind a certain decision made by Robert and Susan represent game theory and dominant strategies. In a scandal that shook suburbia, Robert and Susan Davis each had extramarital affairs that could have led to the devastating end of a picture-perfect marriage. Decisions made by each are analyzed and predicted below using the game theory model. The adulterers each planned strategies regarding their secret love-affairs to bring about the "best" outcome for themselves. Although Robert and Susan may not have realized why they made the decisions they did, game theory can help explain how each arrived at his/her final decision.