(a) Explain why it is important to analyse and understand the situation you have picked.
(b) Describe the players, how they interact, and represent the situation as a game in strategic or extensive form.
Of course, you will have to make a number of assumptions to do this and you should discuss the plausibility of them and, where there is more than one plausible assumption which could be made, present and discuss alternatives.
(c) Use game theory to obtain a prediction of what the players will do and what the outcome will be. In doing so make sure that you specify what equilibrium concept you are using and why. Give an economic/social explanation and interpretation of the predicted outcome. Discuss whether and how the predicted outcome depends on any of the assumptions you made. Mention any unrealistic features of your analysis and how your game model could perhaps be improved if you had more time.
The word limit (2,000 words) does not include material in Appendices. A word count must be provided. A penalty may apply for submissions 10% or more over the word limit. Coursework should be anonymous, should be typed and contain full bibliographic references.