Games Businesses Play

Games Businesses Play uses detailed case studies of competitive interaction to explore the uses and limits of game theory as a tool for business strategists. Because they are analytical rather than descriptive, the case studies are not typical teaching cases. The cases are paired with customized game-theoretic models that cover a wide range of commitment decisions, from short-run commitments such as price to longer-run commitments such as capacity expansion and reduction, product and process innovation, and battles for market share. A variety of quantitative and qualitative techniques are used to test the models' predictions on case data. In addition the book sheds lights on a number of other issues important to strategic management, including the resource-based view of the firm and the emergent theory of dynamic capabilities.