Unit 6 Assignment – Case Study
-
Due
Sunday by
11:59pm -
Points
90 -
Submitting
a text entry box or a file upload
Estimated time to complete: 90 minutes
Instructions
- Watch the media presentation describing a Game Theory Scenario: the Prisoners’ Dilemma.
- Read the Case Studies found under Assignment Files below.
- Pick one of the case studies to analyze. Set-up the analysis by
using a similar matrix to what has been shown in the presentation (and
script). - Discuss the possible decisions that could be made and the outcomes that could occur with each decision.
- This application assignment should be uploaded as a Word document of
at least 350 words. Correct APA style should be used. At least one
citation should be added.
Assignment Files
Unit 6 Game Theory Scenario Audio [MP4]
Unit 6 Game Theory Scenario Transcript [Word Document]
New Drug Therapies for Weight Loss Case Study [Printable PDF]
Nursing Home Bed Vacancies Case Study [Printable PDF]
The Cost of Nursing Home Beds Case Study [Printable PDF]
The Development of Competing MRI Services Case Study [Printable PDF]
Rubric
HC402 Unit 6 Assignment – Case Study
| Criteria | Ratings | Pts | ||||||
|---|---|---|---|---|---|---|---|---|
This criterion is linked to a Learning Outcome |
| 30.0 pts | ||||||
This criterion is linked to a Learning Outcome |
| 40.0 pts | ||||||
This criterion is linked to a Learning Outcome |
| 10.0 pts | ||||||
This criterion is linked to a Learning Outcome |
| 10.0 pts | ||||||
Total Points: | ||||||||
Expert Solution Preview
Introduction:
Game theory is an important concept in the field of economics that helps individuals to understand strategic decision making and its consequences. In this assignment, we will be analyzing one of the case studies provided, using a similar matrix to what has been shown in the presentation of the Game Theory Scenario: the Prisoners’ Dilemma. We will be discussing the possible decisions that could be made and the outcomes that could occur with each decision.
Content:
The Nursing Home Bed Vacancies Case Study is one of the case studies that stand out for analysis. The scenario presented is that two nursing homes, A and B, have five vacancies each. The nursing homes are in competition with each other and must decide whether to lower their rates for long-term stays in order to attract new residents. However, if one nursing home lowers its rates and the other does not, the nursing home that did not lower the rate would still have all of its beds filled and the nursing home that lowered its rates would lose revenue.
Using an analysis similar to the matrix shown in the Game Theory Scenario presentation, we can identify the different outcomes that could occur. If both nursing homes do not lower their rates, they will end up with the same number of residents and the same revenue. However, if one nursing home decides to lower its rates and the other does not, the nursing home that lowered the rate will attract more residents and generate more revenue. On the other hand, the nursing home that decided not to lower its rates will see a decline in revenue due to vacant beds.
Therefore, if both nursing homes decide to lower their rates, they will end up losing revenue due to the lower rates. Hence, the best decision would be to not lower the rates and face the possibility of losing revenue due to vacant beds. The outcome of neither nursing home lowering the rates might be the best decision for both, but it requires a mutual agreement between the two nursing homes.
Conclusion:
In conclusion, game theory provides a helpful approach to decision making in situations that involve competition, between two or more parties. In analyzing the Nursing Home Bed Vacancies Case Study, it is evident that mutual agreement between the two nursing homes on setting a mutually acceptable price that ensures profitability and reduces the possibility of losing revenue due to vacant beds is the best option.
