Think of a time when you were involved in strategic decision making. This could be a business situation or a personal situation. It could be anything from purchasing inputs for a manufacturing firm, to dividing up household chores, to deciding whether we should we punt or go for the first down or kick a field goal?
a. Discuss your dominant strategy for the situation.
b. What was the other personâ??s dominant strategy?
c. What was your unique solution?
d. Were you happy with the outcome?
e. If someone was unhappy with the outcome,what dominant strategy should have been.
Please answer each part of the questions and use game theory terminology. Make sure that you have an adversarial situation with at least two parties.
Consider the example where a patner and I work on a class project. We each work on half of the project and we are graded as a team. Both of us are keen learners and are willing to work hard in order to get a better mark. Also suppose that each of us has two strategies, work hard and slack off, and we only care about ourselves (i.e. the final mark and how much time we put in), while we do not care about how much time the partner puts in.
The following matrix illustrates our payoffs.
Strategic decision making is assessed.