Game Theory Application in Market Structure

Word Count/equivalent: 1500 words


Apply the tools of game theory to issues of market structure and
organisational design.
Demonstrate awareness of strengths as well as limitations of
game theory.
Demonstrate critical and analytical thinking
Submission date &
time:


What am I required to do?
Choose a topic from the list below or any issue from the real world that you would like to use to
showcase your knowledge of game theory. This can be a news report, a policy briefing, an issue faced
by a firm/industry/country/group of countries/ world. Thereafter, the following are the tasks to be
completed. These tasks, taken in order, should provide the structure for the report.
1. Introduce the issue and highlight the importance of the topic.
2. Game Theory Discussion:
a) Describe the game
b) Normal form representation of the game using game theoretic notation
c) Is your topic reflective of any specific classic game?
3. Literature Review: Discuss the game theoretic treatment of the problem in literature.
4. Solutions: What is the Nash Equilibrium solution to your game and explain the solution concept
to arrive at it.
5. Limitations and Conclusions: What are any limitations/considerations of applying theory to your
game. Conclude your report.
List of topics
This is just an indicative list and not exhaustive. Feel free to choose from below or choose any other
real world issue.
• Trade war between US and China
• Brexit agreement – Choose a single aspect to focus on- trade policy/ immigration/
employment
• Competition between firms over price, technology, etc.: e.g., Deliveroo and UberEats, Boeing
and Airbus, Apple and Microsoft, Airbnb and hotel chains, etc.
• Location game – Choose any popular company- Subway/ McDonald’s/ etc
• Bargaining: e.g., why do strikes occur? Case study of the 2019 British Airways strike;
University Unions strike.
• Decision of countries to join/ratify International Agreements. Eg. Regional or International
Environmental agreements; Trade agreements; Currency Unions; Economic unions. Specific
examples could also be the US leaving (or re-joining) the Paris Agreement
• To Vaccinate or not: vaccination hesitancy
• Growth of technology/brands in new markets (e.g first mover advantage). Specific
examples could include the case of Apple or IKEA entering new countries.
• Tragedy of commons- choose any specific examples from lecture titled “Applications of
Static Games”.
• Mixed Strategies in sports – Football, Tennis
EXCLUSIONS: The only topic that CANNOT be chosen is that of the Cold War/ “Mutually Assured
Destruction” (between USA and Russia)
Use Harvard Referencing


• Introduction (15%)
• Game Theory Discussion (40%)
• Literature Review (10%)
• Solutions (15%)
• Limitations and conclusions (10%)
• Scholarship (10%)