Model one of the features of the case study by constructing a game. State the basic facts and intuition/subject: what feature are you trying to capture and examine and why? Explain and illustrate the game structure (players, actions, payoffs, timing, uncertainty, etc) in detail and justify your choices. Link the facts of the case study to the game. Solve the game (find equilibria) and fully interpret your solution. What conclusions can be drawn from the game about the feature of the case study you are examining?

CASE STUDY 1 The Galapagos Islands serve as a major tourism point for the country of Ecuador. The location can inhabit unique species because it is the meeting point for three oceanic currents, creating a varying degree of warm and cold water that fosters irreplaceable marine ecosystems. The animals on the islands have become endemic to their island due to isolation and inability to migrate. Ecotourism has been developed and implemented across the archipelago in hopes of limiting human damage to the nature. However, regulations are only designed for the National Park, not the areas of the islands that are completely open to the public. The public spaces are where the tourism issues really are. Since these spaces are the only ones that allow construction, they are far more likely to become populated by the tourism industry. There are less protections in the public areas to allow individuals to construct hotels and foster economic growth for local tourism. Due to fewer regulations, land-based tourism jumped 92 percent in the number of visitors between 2007 and 2016. Endangered species are at high risk of extinction in their own natural habitat because of improper practices of ecotourism. Even with the government regulations in place and NGOs working alongside them, the tourism industry makes it difficult for them to effectively implement change. The Galapagos Conservancy report reflects the concerns of UNESCO in the sense that tourism is just growing at too high a rate for the environment to keep up with. In the past the Ecuadorian government refused to limit the tourism industry, the ecosystems and natives suffered the cost. If the government and the people of the Galapagos Islands wanted to ensure safety of the native species, they would leave the islands untouched, but given that they serve as a gateway out of poverty for so many on the mainland, it is difficult to hope for that change. However, from 2006 to 2017, over 200 hotels were built on the island which has led to a major drop in prices with budget-friendly rates. This competition from foreign investors has decreased natives' ability to fully profit from the tourism industry. The competition at hand then results in overall lower income for natives working in the tourism industry. The Galapagos Islands generate a large revenue, but the ecosystems are put at risk. Without the biodiversity and uniqueness of the islands, there is a lack of a tourist attraction. Too rapid of tourism growth can lead to the downfall of locals' income. Since the economy is so dependent on tourism, it is important to care for the islands and encourage native-based tourism.