Identify a real-world business example of sequential game in which a firm plays a role of leader by making strategic commitment.

• Answer two of the three exams on the next page.
• Answer each question in about 4 Power Point slides, so that the total size of your exam is about 9 slides (4 slides × 2 questions + title page). 11 or 12 slides are also fine. Please do not go beyond them. I also welcome 5 through 8 slides. I evaluate your exam based on “quality”, not on quantity.
• Try using figures, charts, and/or tables to make your exam viewable.
• Submit your exam to the folder of Moodle no later than February 6th.
• Start with your file name with your student ID. Don’t forget putting your name on the title page.
• I will not accept any questions during the exam period.
• The total score is 100 pts. Below is the breakdown:
✓ How well you understand economics theories in the questions: 40 pts.
✓ How well you apply the economics theories to real business examples: 20 pts.
✓ How concrete/rich are the evidences to support your arguments: 20 pts.
✓ How clear/readable are your arguments: 20 pts.
Question 1.In microeconomics basic theory, many economists believe that “perfect competition” is preferable to “monopoly” or “oligopoly”. At the same time, SCP theory, which is founded on microeconomics basic theory, suggests that firms should be in industries close to monopoly or oligopoly rather than in industries close to perfect competition.(1) Explain why microeconomics basic theory and SCP theory have such divergent views.(2) In perfect competition, firms cannot control market price and thus market price tends to be lower than that of monopoly and oligopoly. In some occasions, however, firms in oligopoly may decrease market price substantially. Explain why this could be the case using ideas of game theory. Further, identify a real-world example of “market close to perfect competition” and a real-world example of “oligopolistic market with price-cut-competition”, and compare their mechanisms. (Note: You cannot use examples discussed in the class.)
Question 2.In game theory, a firm under “(non-corporative) simultaneous game” may make a strategic commitment so as to change the situation from simultaneous game to “sequential game” in which it plays a role of leader. For attaining this objective, the firm’s strategic commitment must be “credible”.(1) Identify a real-world business example of sequential game in which a firm plays a role of leader by making strategic commitment.
(2) Discuss why the identified strategic commitment in your example is credible.
Question 3.Agency theory suggests that interest divergence and information asymmetry between players may incur “moral hazard” problem.(1) Identify a real-world business example to which “moral hazard” problem is applicable. Discuss why it could be the case. (You cannot use an example discussed in the class.)
(2) Based on your identified example in (1), discuss how changing “incentive structure” can mitigate the moral hazard problem.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Custom Paper Help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Paper Help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At Custom Paper Help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.