WSJ: Basic Understanding of Game Theory and Incentives

"Here is how he (David Lee Roth) tells the story in a Vimeo video. By the early 1980s, Van Halen had become one of the biggest rock bands in history. Their touring contract carried a 53-page rider that laid out technical and security specs as well as food and beverage requirements. The "Munchies" section demanded potato chips, nuts, pretzels and "M&M's (WARNING: ABSOLUTELY NO BROWN ONES)."

When the M&M clause found its way into the press, it seemed like a typical case of rock-star excess, of the band "being abusive of others simply because we could," Mr. Roth said. But, he explained, "the reality is quite different."

Van Halen's live show boasted a colossal stage, booming audio and spectacular lighting. All this required a great deal of structural support, electrical power and the like. Thus the 53-page rider, which gave point-by-point instructions to ensure that no one got killed by a collapsing stage or a short-circuiting light tower. But how could Van Halen be sure that the local promoter in each city had read the whole thing and done everything properly?

Cue the brown M&M's. As Roth tells it, he would immediately go backstage to check out the bowl of M&M's. If he saw brown ones, he knew the promoter hadn't read the rider carefully—and that "we had to do a serious line check" to make sure that the more important details hadn't been botched either.

And so it was that David Lee Roth and King Solomon both engaged in a fruitful bit of game theory—which, narrowly defined, is the art of beating your opponent by anticipating his next move. (read more)

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I ran across this old video looking for something else.

LOL at the Rod Serling intro -- I could do that!

I learned a couple stray facts about David Lee Roth:  Born in 1954, he grew up in Indiana but moved to LA as a teen. His father was a successful ophthalmologist and real estate investor. His uncle owned Cafe Wha? in NYC during its heyday and he claims to have hung out there as a kid. He met the Van Halen brothers at a community college. He did a cameo bit in The Sopranos. He actually seems like an OK guy. But can you imagine?