Problem: Strategic Game at the end of Chapter 15 in Managerial Economics: A Problem Solving Approach.
Spend 2 or 3 hours observing the organization in which you are employed. During the observation, identify internal and external interactions of the organization. You can talk to stakeholders who might have information relating to external interactions in order to gather necessary information. Use the observation information to complete all parts of the question presented in the problem. Your response should be 500-750 words. Please include the diagram required in the problem.
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
This assignment is an application of game theory to your organization. First read about simultaneous and sequential game theory to be able to choose which one to use. Gather information about your company's interaction with ( competitors, suppliers, customer or any other). You do this by observation, interview , reading or combination. Use the information collected:
1. Diagram the strategies- decision tree, payoff matrix
2. Compute the payoff ( you can use hypothetical)
3. Compute the Nash equilibrium
4. What can you do to change the rules of the game to your advantage