ECO421 Economics of Information, Winter 2020

Writing assignment

Marcin Pęski

In the writing assignment, you are going to demonstrate that you can use the skills and knowledge that you learned in the class to analyze a real-world strategic situation with asymmetric information. Your task will be to find and a describe a real-world problem, build a formal model, and analyze the model.
The paper is due on the last day of the term, Friday April 3 (that is the FACS rule and I cannot move it). You have two day grace period for weekend. For each late day after April 5, I take away 10% of the grade for the paper. So, if you don’t bring the paper before April 15, you don’t have to do it anymore.
The writing assignment is going to have four parts:
I am going to roughly use the following grading scheme. However, I reserve the right to give a larger number of points if I am impressed by a particular element of your paper (amazing story for example, or creative results). I want to be amazed.
Item Questions Max. points (100)
Story 40
Is the source appropriate (see list above)?
Is it clearly stated?
How original the story is?
Does the story fit the requirements (strategic situation with incomplete information)
Informal description Is the description of the story clear? 10
Separation Is there a clear separation between strategic environment (information and available actions) and the behavior that the players actually choose? 10
Overall impression How good is the writing/composition? 5
Model 20
Game Is the game formally and clearly described? 10
Game vs story Does the game clearly correspond to the story? 5
Overall impression Is the writing clear? 5
Results 20
Equilibrium Is the equilibrium concept clearly stated?
Is the analysis of equilibrium correct?
Additional results Are there any additional results (comparative statics, equilibrium with a different information structure, etc.) 5
Overall impression Is the writing clear? 5
Conclusions 15
What did you learn from this exercise.
Does your analysis describe the behavior that you illustrated in the story? Why or why not?
Additional comments Do you have any additional observations/recommendations/predictions that are influenced by your analysis? 5