Apply one of the games of Chapter 4 to a real-world example.
Give an example of a simultaneous game-like situation in a business setting. Be
sure to identify the players, the nature of the interaction, the strategies
available, and the payoffs to each player. Explain why this situation classifies
as a game. Use the tools developed in class to predict the logical outcome of
the game. From this analysis, develop strategy advice for one of the players in
the game or for a party interested in the outcome.
Assignment 2
Due at the beginning of class 10
choose one of the following:
Mixed Strategies
Apply one of the games of Chapter 5 to a real-world example.
Choose a game without an equilibrium in pure strategies and derive the mixed strategy equilibrium. From this analysis, develop strategy advice for one of the players in
the game or for a party interested in the outcome.
Sequential / Repeated Games
Apply one of the games of Chapter 3 or Chapter 8 to a real-world example.
The game should have a temporal element. That is, it should either be a sequential game or a repeated
game. Make sure to identify the length of the game as well as the players, strategies, and payoffs. From this analysis, develop strategy advice for one of the players in
the game or for a party interested in the outcome.
Commitment & Threats
Apply one of the games in Chapter 9 to a real-world example.
Discuss how the parties might benefit from commitment, the role of credibility, and how commitment may be achieved.
Assignment 3
Due at the beginning of class 14
choose one of the following
Information
Describe an asymmetric information problem facing your company.
Identify the source of the asymmetry
and the information possessed by each party. How could signaling or screening help resolve this uncertainty?
Is this a profitable strategy? Why or why not?
Applications
Bargaining, Auctions, or Strategic Voting. Your memo may be written to
any player in the game. For example, if writing on auctions,
you may recommend a bidding strategy or an auction design.