Article,
The Right Game: Use Game Theory to Shape Strategy. (Cover story)
Harvard Business Review, 73 (4): p57 - 71 (n.d.)
Abstract
Business is a high-stakes game. The way we approach this game is reflected in the language we use to describe it. Business language is full of expressions borrowed from the military and from sports. Unlike war and sports, however, business is not about winning and losing. Companies can success without requiring others to fail. And they can fail no matter how well they play if they play the wrong game. The essence of business success lies in making sure you're playing the right game. How do you know if it's the right game? What can you do if it's the wrong game? To help managers answer those questions, the authors have developed a framework that draws on the insights of game theory. The primary insight of game theory is the importance of focusing on others--of putting yourself in the shoes of other players and trying to play out all the reactions to their actions as far ahead as possible. By adopting this perspective, a company may, for example, discover that its chances for success ar
