This is memo needs to be one to two pages long enough and it is regarding strategic issue.

Your task is present the strategic issue and analyze using game theory tool that you are learning in the course. Just a reminder, this is a team assignment. Please designate one person from your team to hand in the final assignment.

In this assignment, you are going to present a strategic problem which must include a case of bargaining/negotiation. You must carefully analyze the bargaining outcome (cooperative or non-cooperative) and present the equilibrium analysis.

The first part of the memorandum document, you carefully will describe the strategic issue with the relevant fundamentals (Players, Strategic Actions, Payoffs)

The second part of the memorandum document, you carefully represent the game and analyze the strategic issue using the game theory tools.

Be sure to indicate any equilibria of the game, which you are analyzing as your strategic issue. Creativity is important. Consider a different situation from those discussed in live sessions and class slides. In evaluating these assignments I consider creativity (applying the class models to new situations and/or extending the models in new ways), applicability (relevance to the real business world), and analytic accuracy (correctness of the game theoretic analysis). Submit your examples as a word document or pdf. Make sure that I can understand your analysis and be clear what your recommendation is in conclusion.

Do not use any special formatting or styles in the documents. You may want to borrow graphic elements from the class notes, PowerPoint files (like game trees or matrices) but the numbers and the application should be substantively different from class.