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COVID-19 has resulted in an increasing level of single use plastic waste generated across the globe. While a range of products such as face-masks, sanitisers,

COVID-19 has resulted in an increasing level of single use plastic waste generated across the globe. While a range of products such as face-masks, sanitisers, personal protective types of equipment are necessary for protecting lives during COVID-19, the cost imposed on the environment is concerning.

For this part, you are required to construct only one (1) relevant payoff matrix, using numbers in each quadrant.

Here are some key parameters and assumptions of this game:

  • There are two players - the first player is 'Hospital A', and the second player is 'Hospital B'.
  • There are two strategies - 'invest in waste reduction mechanism' (that will need spending resources but will be good for the environment) or 'business-as-usual'.
  • Both the players are motivated by self-interest.
  • This is a simultaneously played game, where the players are taking actions at the same time.

  1. Explain how this case is a social dilemma.
  2. Explain in words the possible outcomes of this game.What do think is the likely strategy that each hospital would like to adopt over the next few years with respect to their waste reduction policy position? Use the relevant game theory concepts while explaining the possible outcomes in your answer.
  3. Explain briefly the environmental implications of the plastic waste generated due to COVID-19 and suggest an effective waste management system that can be adopted to minimise the cost to the environment.

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