1. Choose a game theoretical situation drawn either from personal experience, fictional sources (literature, drama, TV, movies), or non-fictional reporting of a situation (e.g., corporate acquisitions, political manoeuvring). The agents can be individuals, groups, or organisations. You will:
a. give a brief narrative overview of the scenario
b. represent the situation in quantitative game theoretical terms, usually describing the payoff matrix you think best captures the situation, and describe any limitations or alternative payoff matrices that might accurately capture the scenario.
c. Describe the properties of this scenario – the type of game, the Nash Equilibrium, Pareto optimal solutions, dominant and dominated strategies and similar. Evaluate the actual outcome based on this analysis – did the parties act rationally, was there potentially a better solution?
2. Briefly review the behavioural game theory to identify some of the non-game theoretic factors that could have influenced the outcome of the situation you are examining, describing how they might have been implemented in your situation. These could include factors like familiarity, trust, reputation, and specifics of the scenario or its framing.
3. Present a rationale and design for an experimental study to test in the laboratory the potential impact of one or more of the factors you have identified in 2. This should be presented in standard APA format, describing the participants, materials, design, and procedure, and explaining the reasons for the key design decisions you made.
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