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| − | Game Theory is about the selection of a strategy given the likely conflict of interest between two or more decision makers. If the sum of gains and losses is '0' this is referred to as a ''zero sum game''. Usually competition in a business context is not likely a zero sum game as advertisements and competition can increase the total market. | + | Game Theory |
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| − | Game Theory studies the interaction when individuals are aware of their decisions of others.
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| − | The value of a game can increase by:
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| − | * Adding an extra buyer, see the[[Cellular phone case|Cellular phone case]]
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| − | * Adding a second (or third) supplier, see the Monsanto [[Nutrasweet case|Nutrasweet case]]
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| − | * ,see the [[Nintento case|Nintento case]]
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| − | Key learning points for game theory:
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| − | # Seek a dominant strategy:
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| − | ## Always expect rivals to play a dominant strategy
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| − | # If no dominant strategy exists:
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| − | ## Issue is whether to deny or signal relevant information
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| − | # Dynamic games of incomplete information
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| − | ## Bring to the fore asymmetric information, signalling and learning;
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| − | # If rival signals a threat,
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| − | ## Always believe if implementation is credible
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| − | # Credibility:
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| − | ## Derives from rival's actions that suggest thread will be carried out.
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| − | Part of: [[M7-Quantitative Decision Methods-S5 - Game Theory|M7-Quantitative Decision Methods-S5 - Game Theory]]
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| − | See also: [[Game Theory Training Yale|Game Theory Training Yale]]
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| | [[Category:mbi]] | | [[Category:mbi]] |
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