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Game theory

Select a game theory, and apply it to an industry. For example, you might choose to explain a fluctuation in the price of oil or address pricing and competition in the airline industry, the mobile phone industry, or any other industry of your choice.

Include the following in your paper.

  • Name the industry.
  • Identify the structure of the industry.
  • Describe the performance of the industry during the past three years.
  • Indicate a game theory and a major decision the industry might make based on that theory.
  • Use a decision tree or payoff matrix to show players, strategy, and payoff (you can use hypothetical numbers).
  • Apply the Nash equilibrium, and identify a dominant strategy involved, if one is in play.
  • Discuss if a player can change the game to his or her advantage.

 

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