Dictionary

Glossary of game theory terms.

Application to Strategic Management

Game Theory has evolved since its origins as a thought exercise for academic mathematicians. Taught in top business schools, economics departments, and even military academies, the strategic analysis and insight of game theory is crucial to surviving in the modern economy. Simply, game theory is the study of interaction. Formulating a business strategy requires not only knowledge of your own company's strengths and weaknesses, but the intentions, strengths, and weaknesses of competitors, allies, regulators, and customers. Whether running a traditional business, or looking to formulate a powerful new business strategy, both an understanding and appreciation of game theory are essential.

updated: 15 August 2005
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