ECON2070 Case Study Assessment
Game Theory in Action
1000 words - 30% of course grade
Due 4:00pm, 15th January
Summary. This task consists of a 1000-word case study, in which you will research and critically analyse a recent real-world strategic interaction case by using the models and tools of game theory we learn in this course.
1. Brie y describe the nature and characteristics of the chosen case.
2. Explain which strategic interaction model the case you choose possesses.
3. Describe the case as a game (strategic interaction model) by using the tools you learn in this course and the characteristics of the case.
4. Describe the predicted outcome of this strategic interaction problem (solve the game). You can use computational tools if there is no closed form solution.
5. Analyse and discuss the predicted outcome and whether the case has reached/is expected to reach the predicted outcome.
Graphs, tables and gures should be included if they support your analysis. You should summarise your analysis in a single paragraph in your case study's conclusion. Finally, you should brie y criticise your analysis, emphasising its strengths and weaknesses for understanding and providing policy guidance in the real world. Provide a properly formatted references section (not a bibliography) for all cited claims.
Your case study must be saved as a pdf document and submitted via the Turnitin link in the assignment folder on the Blackboard website of the course by the due date and time.
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This is an exercise in which, among other outcomes, you need to demonstrate your independence in identi- fying and conducting an economic analysis of a relevant real world strategic interaction scenario. This is an individual assessment item and you are not allowed to work in groups. All information you need is contained in this instruction sheet. |
Detailed Task Description
1. Choose a real-world strategic interaction case that appeared in written resources since June 1, 2023
(during the last six months). The resources include journals, newspapers, policy brief, blogs, etc.
2. Brie y describe the nature and characteristics of the chosen real-world strategic interaction case.
3. Explain which strategic interaction model the case you choose possesses. For example, does it possesses the normal form games, sequential move games, Bayesian games, signaling games, etc.
4. Describe the case as a game (strategic interaciton model) by using the tools you learn in this course and the characteristics of the case. For example, if you model the case as a normal form game, you need to provide the players, their action sets and payo s. you should determine if the exact numerical values of the payoofs are relevant in your analysis or just the ordinal ranking of action pro les are enough. The payo s should be compatible with the case you choose and you need to justify the payo s.
5. Describe the predicted outcome of this strategic interaction problem (solve the game). You can use computational tools if there is no closed form solution. You are expected to characterize ( nd) all possible equilibria and show your work.
6. Analyse and discuss the predicted outcome and whether the case has reached/is expected to reach the predicted outcome. In this part, you discuss the policy implications. If the case you choose already reached an outcome in real world, compare your equilibria with the outcome of the case. If not, you should discuss what is expected to be reached in real world case and compare it with your equilibria.
7. Conclude your case study with a critical re ection about how useful your game theoretic approach is for understanding and providing policy guidance in the analysed situation in the real world.
Clari cations and Guidelines
❼ Items 4, 5 and 6 are the centrepieces of your work. You should aim to do it well and about 70% of the word count should be expended here.
❼ You must clearly state which game theoretic model you are basing your analysis.
❼ Justify your statement of the model you choose. We have seen many examples of models that are suitable in analysing real world cases in the lectures and tutorials, and will see more in the upcoming lectures.
❼ Use proper and consistent referencing style, including in your citations. Guidelines for correct referencing techniques and presentation style is available in the Case Study folder on the Blackboard site of the course.
❼ Your case study's word count should be reasonably close to 1000 words. Penalties may apply otherwise. Your word count excludes material included in tables, gures, graphs and your case study's references list.
Remember, good assignments are not characterized by their length, but by the conciseness and thoughtfulness of the arguments made.
❼ You will bene t by using tables, game trees, or diagrams similar to those presented in the course and textbook. These should be fully and correctly labelled. Appropriate use of tables, game trees and diagrams may be useful for receiving high marks.
❼ The assignment is due before 4:00pm, 15th January. Case studies submitted after the due date and time will be penalised unless prior agreement for late submission has been formally provided by the Course Administrator. See the ECP for late submission penalty. A description of the process required for obtaining an Extension of Assessment Due Date can be found in section 6.1 of the Electronic Course Pro le of the course.
❼ Try to upload your assignment a few hours before the deadline since Blackboard and Turnitin system overloads can occur close to the deadline time.
Frequently Asked Questions
❼ Does the case I choose have to be in Australia?
No. However, all references must be in English (i.e., if you list a website, journal or newspaper article
as a reference that supports your description of a case, it must be in English).
❼ I do not have the data to exactly describe the game in my case. What can I do?
In almost all cases, you will not have the time or resources to gather the data to exactly describe the game for your case.✶
Therefore, your game matrix, description of the game, or game trees will be mostly qualitative rather than quantitative in nature. As we covered in the lecture, if you are concerned with pure strategies (no randomisation of strategies or incomplete or imperfect information), then qualitative description will be enough to obtain all equilibrium strategies. However, if you are providing policy analysis or comparing payo s, or allowing randomisation, or your strategic interaction problem involves incomplete information, then you have to consider the quantitative aspect of your game (cardinal utility) and spend more time and e ort in justifying the numerical utility number you provide.
Note that some real world strategic interaction problems involve randomisation in nature, such as any zero sum game (recall that each player wants to be unpredictable in zero sub games) or penalty kick game. Hence, if you pick a real world problem in which randomisation is essential, you have to include randomisation and mixed strategies in your analysis.
❼ Do I have to format my case study report in a particular way?
Yes. Please comply with the following instructions. Any violation (e.g., missing word count) may lead to penalty.
Include a word count, your personal name, your family name and your student number on your front page. Your word count should exclude material included in tables, gures, graphs and your case study's References section.
Use1.5 line spacing or double line spacing.
Fonts must be easily readable, including those used for gure captions.
❼ My case study is 1050 words long. Do I have to cut it down to 1000 words?
Not necessarily. However, you should try to stick as close as possible to 1000 words. An excellent 1050 word case study will receive a high mark, while a poor 1000 word case study will not. However, if you exceed 1000 words it can be a hint that your case study contains super uous information or is not focused enough, which may attract a poor mark. Similarly, if your case study contains fewer than 1000 words, it may indicate that it is not deep or detailed enough.
❼ How do I submit my case study?
The case study must be submitted via the Turnitin link in the Case Study folder (in the Assignment section of the course Blackboard site). The submission must be electronic in pdf format only (no hardcopies or Word documents).
❼ The Turnitin similarity report shows a similarity of x%. Is this still acceptable?
Short answer: I do not know. Long answer: The similarity report is a tool that assists case study graders in recognising if a part of your case study has been plagiarised. In some cases, the report mistakenly picks up passages that have been correctly cited. In other cases, the report fails to pick up plagiarised passages. If your similarity score is 0% but you plagiarised and it is discovered by another method, I will refer your case for investigation. If your case study contains a correct quote that the report picks up, this will be ignored. What matters is not primarily the similarity score but that you do not plagiarise --- this is an important responsibility that you have as an author.
Please refer to the following UQ Academic Integrity and Student Conduct page to understand what constitutes plagiarism. (Select the Academic Misconduct tab.) https://my.uq.edu.au/information-and- services/manage-my-program/student-integrity-and-conduct/academic-integrity-and-student-conduct
Marking Guidelines
Your submission will be graded on your performance in these areas:
❼ Content: relevance to the question, sound interpretation and understanding of game theory.
❼ Clarity and robustness of argument: logical thinking, clarity, succinctness and coherence.
❼ Fit of the theoretical model and analysis to the presented real world situation.
❼ Use of clear, well-labelled, relevant tables, game trees or diagrams that support your arguments.
❼ Evidence of reading outside of your main source article and textbook.
❼ Use of references: correct and consistent citation format in the body of your case study; correct and consistent referencing format in the References section at the end of your case study. You should support your arguments with at least three (3) references in addition to material from your textbook. Note that the References section is just that. It is not a Bibliography (enter references section vs bibliography into your favourite internet search engine to see the di erence).