This assignment asks you to analyse a specific situation that requires game theoretical analysis, and offer advice about the best course of action. It will require analysis of decisions about the...

This assignment asks you to analyse a specific situation that requires game theoretical analysis, and offer advice about the best course of action. It will require analysis of decisions about the modelling approach you wish to take. Write a short, concise response of under 350 words, not including figures or mathematical equations. Required Write down this Simultaneous Move Game and make Reynolds the row player and Philip Morris the column player. Does either Reynolds or Philip Morris have a dominant strategy? Explain why or why not. Find the Nash equilibria (or equilibrium) of this game. Note that a good ‘rule of thumb’ for assessing whether a particular combination of strategies constitutes Nash equilibrium is to ask whether either player has any incentive to choose a different strategy. Does either player have an incentive to choose differently? What do you think happened to profits in the cigarette industry immediately after the government implemented this ban on TV and radio? What do you think eventually happened to profits? Learning Outcomes Identify real situations where game theory can be enlightening. Put a real situation into game theoretical formalism. Manipulate the formalism via game theory to reveal insights. Preparation Don’t just copy out huge chunks from other people’s work, otherwise they will probably end up in your assignment with very little of the wording changed (which is plagiarism). Writing Make sure you have understood what the assignment is getting at and that you know how to complete it. In particular, please be aware that no assignment will ask you just to write down everything you know about a subject area; instead, it will require you to consider specific issues. Try to stick to the introduction, discussion, conclusion format in your essay. That is, set the context of the essay and outline the structure of your argument, cover the relevant material, and then tie the discussion up by summarising what has been said and offering YOUR opinion on what the question is asking about, based on the sources you have used. You should provide evidence for all the assertions that you make during your assignment; that is, make reference to ideas, theories and concepts, empirical research and/or experience of your own which support your claims. Remember to cite the sources of ALL the ideas and quotations that you have used in-text. Also, don’t forget to provide a full bibliography – and don’t try and pad it out! Only list sources you have actually looked at. Refer to the referencing guidelines provided for this topic. Develop your points to make it clear what you are getting at and don’t leave arguments ‘hanging in mid-air’. Referencing All sources, whether academic books, journal articles, newspaper articles, material from the Internet etc., must be cited in the main text of your assignment itself. Marking Criteria Relevance of your answer to the question Clarity of expression Supporting documentation for arguments Proper acknowledgement of documentation and the use of a bibliographic convention Overall presentation, including correct grammar, spelling and punctuation Comprehensive coverage reflecting mastery of readings and text Logical planning and sequence. The assignment should contain at least three well defined and distinct sections: • An introduction • A discussion (the body of the assignment) • A conclusion. You will need to pay attention to the following aspects of this case study assignment: Analysing the hypothetical case Designing Simultaneous Move Game Solution method for the game described Finding a Nash equilibrium in pure strategies Discussion on whether the players have incentives to choose a different strategy Give insights into what may happen to profits in the cigarette industry after the ban on TV and radio advertising Content References