Extra Credit Opportunity
Here is an opportunity to convert either a missing homework or a homework on which you received a “check minus” into a “check.” What I want you to do is to apply the concepts of game theory to a real world situation. Here is what
I want you to do:
1. Find a newspaper article describing a real world strategic situation, or
think of a strategic situation that occurs in your life. You can even take a
strategic situation from a movie or TV show.
2. Define a game (either normal-form or extensive-form) that models the
situation. You might have to simplify the situation or make up reasonable payoff
numbers.
3. Solve the game for its Nash equilibrium (or SPNE, PBE, etc.) and briefly
discuss.
The writeup should be about 2-4 pages, and please be neat when you are
drawing the payoff matrix or game tree.
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