Chapter 10 - Game theory and competitive strategy. In this context, we could just as well call our approach strategic profit analysis. Nonetheless, the more general term, game theory, remains apt. This name emphasizes the kind of logical analysis evident in games of pure strategy - chess, poker, even war games. | Chapter Ten Game Theory and Competitive Strategy It is a remarkable fact that business strategies are played largely in the mind. Only a small part of the play appears in overt action. Its full scope and depth lie in the payers’ looking backward and forward and running through their minds their alternative moves and countermoves. ~John McDonald, The Game of Business For Discussion A Battle for Air Passengers Three airlines (A, B, and C) are competing for passengers on a lucrative long-haul air route. Sizing up competitive situations Elements common to all competitive situations: Players and Their Actions Outcomes and Payoffs Underlying “Rules” Sizing up competitive situations Elements that differ across competitive situations: Number of Competitors Degree of Mutual Interest Communication and Agreement among Competitors Repeated or One-Shot Competition Amount of Information Analyzing payoff Tables Jockeying in the TV Ratings Game Equilibrium Strategies Market-Share Competition The . | Chapter Ten Game Theory and Competitive Strategy It is a remarkable fact that business strategies are played largely in the mind. Only a small part of the play appears in overt action. Its full scope and depth lie in the payers’ looking backward and forward and running through their minds their alternative moves and countermoves. ~John McDonald, The Game of Business For Discussion A Battle for Air Passengers Three airlines (A, B, and C) are competing for passengers on a lucrative long-haul air route. Sizing up competitive situations Elements common to all competitive situations: Players and Their Actions Outcomes and Payoffs Underlying “Rules” Sizing up competitive situations Elements that differ across competitive situations: Number of Competitors Degree of Mutual Interest Communication and Agreement among Competitors Repeated or One-Shot Competition Amount of Information Analyzing payoff Tables Jockeying in the TV Ratings Game Equilibrium Strategies Market-Share Competition The Prisoner’s Dilemma Once Again Two Tiered Tender Offers Competitive Strategy A Common Standard for High-Definition DVDs The Platform Wars Continue Market Entry Bargaining Bargaining Over the Terms of a Transaction Competitive Strategy Sequential Competition An International Mineral Lease Entry Deterrence Figure Moving Toward an International Agreement Figure Deterring Entry Competitive Strategy Repeated Competition Repeated Price Competition Other Aspects of Reputation A Final Note on Finite Competition A Battle for Air Passengers Revisited Appendix to Chapter 10 MIXED STRATEGIES Market Competition Revisited A Game of .
