You are to construct a relevant payoff matrix (with numbers only) in relation to the first few days of March 2020 and consider first mover advantages of the game played sequentially. In this game, there are two players – player ‘a’ and player ‘b’. Player ‘a’ is a representative hoarder (buyer come seller). Player ‘b’ is a representative single buyer. Assume players are acting rationally. You will need to work out what the two strategies are and the associated numerical (hypothetical) payoffs.
In your analysis, discuss the role of preferences amongst the players and how this affects the allocation.