Economics - game theory guru - Roger Myerson

Game theory is a tool used to understand decisions made in situations involving several players. These situations range from wars to family relationships, from president election to bargaining in the black market. Businesses also use game theory to make strategic decisions

One guru on game theory is Roger Myerson. He is a professor at the University of Chicago. I find the following pages on his website interesting

- Academic papers marrying public policy and political decision-making with economics

- Excel add-ins that add statistical functions for Monte Carlo simulation and risk analysis. His tools supplement Excel's weakness in probabilistic calculations. The add-ins allow users to generate Poisson, beta, gamma and log-normal distributions, as well as some other analytical features

- Syllabus of graduate-level economics classes at the University of Chicago. Here I got a chance to learn what the teach in one of the world's best school of economics

- Roger Myerson's Curriculum vitae (CV in pdf). To become a prominent academic is not easy. The long list of positions held and papers published helped me realize this. If I were to go into academia, better be ready for that. It's also fun going through his professional journey on paper


More information on game theory
Wikipedia entry

Gametheory.net
- Books, academic papers, and online games on game theory for professors, students and practitioners

Kuwait's oil dependency

Kuwait is a major oil exporting country, and it's economy is highly dependent on the oil sector.

Here is a piece of interesting statistic that I'd like to share. Below is a list of the 10 largest industrial and service sectors in Kuwait, and their contribution to GDP. Oil is the largest sector, bigger than all the 9 other top 10 sectors combined

While the economy is booming now due to high oil price, this situation should not be taken for granted. If oil price plummets, the economy will face big problems. It should diversity its economy away from oil to better react to oil price fluctuations

GDP contribution from each sector
2005 figures, in USD millions

1. Energy, Mining and Quarrying (24)
2. Public Administration, Sanitary and Personal Services (8)
3. Business Services (3)
4. Real Estate & Dwelling (2)
5. Petroleum Refineries (2)
6. Financial Institutions (2)
7. Retail Trade (2)
8. Wholesale Trade (1)
9. Communications (1)
10. Transportation & Storage (1)

The data can be obtained from the Central Bank for free, or international data vendors, e.g. Global Insight, at a cost

Central Bank of Kuwait

Ministry of Planning