1. Student Guide : Writing personal statements Personal statements – what to write and what not to write Interview questions – including problem solving and game theory questions Enrichment activities

2. Personal statements - What to write 75% on why Economics/subjects to be studied At least two books that have been inspiring, with some comment on them Original ideas e.g. why the solution to the euro crisis is for Germany to leave the euro Reference to the significant economic events in recent years You must show a commitment to independent reading and thinking

3. What to write (continues) Novel opening Efficient style – even to the point of being pithy Reasons for liking Economics – show that you have gone beyond specification Consistent capitalisation of Economics Original context (easy to spot) Pithy style

4. Personal statements - What NOT to write Corny statements e.g. “I have always loved Economics” (most didn’t know what it was until 16) Too much about things that many applicants do, e.g. Young Enterprise Don’t write what someone else wrote Don’t write about books that haven’t been at least largely read

5. What NOT to write (continued) Do not elaborate about childhood or family influences Too many drafts (becomes staid) “I set up and ran an economics society” if it was just a couple of meetings I want to be a banker – if there’s an “I’m only in it for the money” implication (we do need good bankers!)

6. Interview questions – including problem solving and game theory questions “Thank you for advising me to read about Game Theory…”

8. Melvyn Bragg In Our Time http://www.bbc.co.uk/podcasts/series/iot

9. Game theory enrichment activities Guess 2/3 rd of the average when all players choose a number 0-100 Warning – do not play this if anyone has played it before – if they have, they must become facilitators Play successive rounds of this. You should end up very low Why does it make a difference if the group of people is large or small? If just two people? Would there be any chance of losing if you picked zero in a two-person game? (Answer: the worst is a draw.)

10. Prisoner’s Dilemma Boeing and Airbus are deciding whether or not to produce a new plane Assume Boeing is the bigger firm and so it has the right to move first (sequential situation) What is the most likely outcome? Payoffs (next slide):

11. -£3bn £10bn £0bn £10bn £0bn Boeing Airbus Build new plane Don’t build new plane

12. Further development: What if Airbus gets a subsidy if it produces? What if Airbus announces that it will produce anyway? The game becomes simultaneous rather than sequential?

13. Fairness vs. reason: The Ultimatum Game In the Ultimatum Game, two players are offered a chance to win a certain sum of money. All they must do is divide it. Give out sheets of instructions (in resource pack). The proposer suggests how to split the sum. The responder can accept or reject the deal. If the deal is rejected, neither player gets anything.

14. The rational solution, suggested by game theory, is for the proposer to offer the smallest possible share and for the responder to accept it. If humans play the game, however, the most frequent outcome is a fair share. Fairness will evolve if the proposer can obtain some information on what deals the responder has accepted in the past. The notion of equity is linked to cooperation and reputation.

15. Collective vs. individual decisions There are three workers, A, B, and C. A is not satisfied with the wages, but he thinks the hours are fine. B thinks the hours are too long, but the wages are okay. C is neither satisfied with the wages nor the hours. They are considering going on a strike. They will only go on a strike if, and only if, they are not satisfied with both wages and hours. They must make a collective decision i.e. If they decide to go on a strike, they must all go. Do you think they should go on a strike?

16. Wages too low Hours too long AYesNo B Yes C

17. Wages too low Hours too long Strike? AYesNo B YesNo CYes

18. The applicant writes: The problem was simplified by the table which he wrote it on a white board, initially without the “strike?” column Discussion proceeded, he added the “strike?” column; I came to realise that there is a contradiction between their collective interest and their individual interest.

19. Problem solving - similar to online specimen paper 2006 PPE There are 2000 people in Oxford, and they all need to arrive in London at 9am. There is only one suitable train which leaves Oxford at 8am and train tickets cost £30. The max. capacity of the train is 1000 The only alternative is to drive on the M40, which costs £10. If there are 1000 cars on the M40 then the total journey will be one hour (the same as the train journey).

20. The more cars on the motorway the longer the journey time – here is equation: t = 0.0025c – 1.5 Where t = time in hours, and c = number of cars And if 1400 cars = 2 hours 1800 = 3 hours Hours are valued at 1 hour = £10 What will happen? Following slide:

21. Number of cars on M40 Hours of travel

22. Work out what is trying to be achieved Travellers want minimum cost But cost is enhanced by time Needs relationship for the enhanced total cost of the trip, when the value of time is added If time = £5 how many people (v) go by car: Enhanced cost = 70 000 – 32.5v + v 2 /80 Differentiate this to find minimum enhanced cost -32.5+v/40=0 so v=32.5*40 = 1300

23. Check the assumptions What will happen if hours are worth more? There are no other cars joining the network No gridlock Car users cannot change their minds once they have set out The train operators will not change their prices when they see your conclusions Before setting out the people have to judge how many other people have already decided to travel by car or by train.

24. Enrichment Pack of questions for game practice (10 games) Competitions, speakers and debates Links, book lists and past papers (on site) Networking with other schools Intellect vs intelligence. What are you selling? http://www.youtube.com/watch?v=p3Uos2fzI J0 for Golden Balls http://www.youtube.com/watch?v=p3Uos2fzI J0