1. Market Analysis Identify Players and Strategies: Based on game theory, ident

1. Market Analysis
Identify Players and Strategies: Based on game theory, identify the major players (firms) in the market. Students are free to choose the scope of the market.
Firm Behavior Analysis
: Discuss the strategic behavior of firms in terms of pricing, output, and other strategic interactions using related theories (including but not limited to Nash equilibrium, dominant strategies, and best responses). Support claims with relevant data/facts.
Identify Market Structure: Classify the chosen market as Cournot, Bertrand oligopoly and justify the classification.
Market Power and Welfare: Evaluate how these behaviors impact market power, consumer
welfare, and overall social welfare. Support claims with relevant data/facts.
Hypothesis Formulation: Based on the previous analysis, identify a potential disruption in
your market, such as cost variations, shifts in market demand, or changes in the number of firms. Discuss how that disruptive event would influence market dynamics and firm strategies. 2. Market Numerical Exercise
Simulation Parameters: Create a simplified version of your assigned market for the simula-
tion. Define elements like the number of firms, market demand, and cost structures. Justify your assumptions.
Role Assignment: Take on the role of a firm in your market. Make strategic decisions as if you were part of this market, i.e., solve for Nash Equilibrium.
1 Useful database: Passport or Marketline or Statista
2
Testing Hypotheses: During the simulation, apply your hypotheses to see how they play out. Adjust your strategies based on market changes.
Reflection on Outcomes vs. Hypotheses: Reflect on how the simulation outcomes align with or differ from their initial hypotheses and the reasons behind these outcomes. Discuss how game theory enhanced understanding of the analyzed market dynamics. In this assessment, we shall delve into the intricacies of oligopolistic markets, a cornerstone of modern economic theory and practice. Your task is to conduct a rigorous analysis of the assigned market, applying critical economic and game theory frameworks. The exercise will challenge you to not only understand the dynamics of your respective market but also to engage in a simulated environment where strategic decisions will be tested against real-world scenarios. Finally, you will be expected to articulate well- reasoned policy interventions, grounded in your analytical findings. This exercise is designed to provide you with a practical understanding of how economic theories manifest in real-world business contexts.
Selection of Market
You will be assigned one real-world oligopolistic market.
0: Telecommunications
Calculate assigned topic: Select the last two digits from your student number. Dividing it by 6 gives on the integer part and the remainder. The remainder is your assigned topic. you
For example: If your student number ends in 34.
345×6+4
The integer part is 5, the remainder is 4. Your assigned topic is Banking and Financial Services. Important: Failing to analyze the assigned topic can result in zero mark for the whole assignment.