Question

Decision-making and game theory Assignment Due for oral presentation in class: on Wednesday 5 June 2019 Please note: A short oral presentation will be made by each student on the due date. The mark(s) assigned may go into the final assessment of the student Determine which of the following situations describe games and which describe decisions. In each case, indicate what specific features of the situation caused you to classify it as you did. a) A group of grocery shoppers choosing what flavor of yogurt to purchase b) A pair of teenage girls choosing dresses for their prom c) A college student considering what type of postgraduate education to pursue d) Microsoft and Netscape choosing prices for their Internet browsers e) A state gubernatorial candidate picking a running mate

Answer 1

a. Decision

When a group of shoppers or consumers choose the flavor of yogurt to purchase, it is a decision that they have made. There isn't any competition or strategy involved or no room for competition. It has got nothing to do with the producer's strategy with his competitor as the shoppers have themselves decided upon which one to purchase.

b. Decision

When a pair of teenage girls choose their prom dresses, they are deciding upon what to wear. The situation isn't a game as producers aren't involved in the girls' choice scenario.

c. Decision

A college student considers what type of post graduation to pursue. He is deciding upon his future. There isn't any producer / competitor strategy involved in his decision process. His decision has got nothing to do with 'game'.

d. Game

When a multinational technology company (Microsoft) and a series of web browsers (Netscape) chooses prices for their internet browsers, the process becomes a game. Both the competitors choose upon their browsers price, and the involvement of their strategies and policies makes it a game that ultimately made them decide upon the prices of their browsers.

e. Decision

When a gubernatorial candidate picks a running mate (example ; president choosing his vice president), it is a decision made upon whom to work with. The situation isn't a game.