In your groups, you are required to work on a real-life experience that requires strategic interactions. You will be required to submit two key elements for this assessment:
Written report
Video presentation
This task builds on the skills you developed in class and provides you with the opportunity to revise the contents of Lectures 1 to 7, reflect on the concepts covered there, and most importantly develop your skills in applying these concepts to an issue of your choice from the real world. The task also encourages you to think critically about economic and policy issues.
This assessment requires you to read through the two strategic interactions below (Part A | Part B) and address a series of key questions.
PART A
From your life experiences, think of a situation where you engaged in a strategic interaction where players made decisions simultaneously.
In your written report you must address the following questions:
Describe the interaction, including details of the strategies that were available to you and your opponent. Generate a pay-off matrix to represent the interaction if it were to be played simultaneously. Comment on what type of game this strategic interaction (e.g. prisoner dilemma, coordination, etc.).
Find all the pure and mixed strategy Nash Equilibria in the game.
Describe strategic moves you could have used to improve your pay-off in this game.
How did you play the game and what was the outcome? Given your analysis, would you have played the game differently?
PART B
Think of strategic interaction from your life experience, where players played sequentially.
In your written report you must address the following questions:
What would be the rollback equilibrium in the game assuming (i) you were the first mover? (ii) you were the second mover?
Are there any advantages to being the first mover or second?
How did you play the game and what was the outcome? Given your analysis, would you have played the game differently?
DISREGARD VIDEO PRESENTATION
ATTACHED ARE THE ASSESSMENT ELEMENTS AND RUBRIC