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. De?ne a game (either normal-form or extensive-form) that
models the situation. You might have to simplify the situation or make up
reasonable payo? numbers.
3. Solve the game for its Nash equilibrium (or SPNE, PBE,
etc.) and brie?y discuss.
The writeup should be about 2-4 pages, and please be neat
when you are drawing the payo? matrix or game tree.
