CHARLIE
The good news is, it's still in its
infancy. Supplies are limited.
There're only a handful of suspected
dealers. Conditions are perfect...
DAVID
Perfect for what, Charlie?
CHARLIE
We don't have to wait for an
epidemic before we act. I've got a
plan to stop Ice now, before it
takes off.
LIZ
A math plan...
CHARLIE
Economic Modeling Theory, actually.
The IS-LM model is a graphical representation of a Keynesian model of the macroeconomy. The model solves for
equilibrium in both the goods market and the money market, taking certain parameters as given. The IS line represents
the goods market, and the LM line represents the money market.
CHARLIE
Let's put it on the board.
Charlie tosses the ball to Alan, writes "GAME TEMPO" under
the list they're compiling - "GYM TEMPERATURE", "OPTIMUM
CHARLIE (cont'd)
Tell you another thing I'd like to
look at, and we'll want to recruit
Larry's expertise for this...
ALAN
Go to Larry? For basketball?
CHARLIE
Physics, Dad... I'll bet there's
an optimum arc for a shot that'll
maximize its chance of going in...
AMITA
Good point, put it up.
As Charlie turns to the board, his CELL PHONE RINGS. He
tosses the chalk to Amita. While Charlie takes the call,
Amita adds "SHOT ARC" to their list.
This Demonstration illustrates the various factors that influence the trajectory of a
soccer ball. It shows the many decisions a
player would make to pinpoint a shot, especially in relation to the location of the goalie.
DON
We don't know that, Charlie. Guy
finds out he's surrounded, outgunned
and out-numbered... Could
be more than he bargained for...
CHARLIE
Look, right now, we hold an
unexpected asymmetric advantage
over the Nash Equilibrium...
(off Cam)
Game Theory...
Consider a bimatrix (2×2)
mixed
extended game. The set of
Nash
equilibria (red) in a particular
game is
determined as the intersection of the graphs of best response mappings of the blue and green players; its vertices are
given at the bottom.
CHARLIE
So let's say my economic modeling
theory works, and we destroy the
Hawaiian Ice market... something
else is just going to take its
place, right?
DON
Probably... Did you think you
could fix the world?
CHARLIE
Well... yeah.
We use numerical
maximum likelihood
estimation to obtain the parameters governing probability distributions that might plausibly generate the daily, weekly,
monthly, or quarterly return distributions of stocks from the Dow 30. The candidate
distribution types should probably
be
continuous and
supported on the whole real line.