Game Theory
Game theory is the study of decisions in which the outcome depends on what others choose as well as on one's own choice.
Why It Matters
Pricing, capacity and bidding decisions are all games in this sense, which is why competitors often move in patterns rather than independently.
Related Terms
- Second Order ThinkingSecond-order thinking asks what follows from the consequences of a decision, rather than stopping at its immediate effect.
- Competition PolicyCompetition policy is the body of law and enforcement that limits monopoly power, reviews mergers and prohibits practices that restrict competition.
- Decision MakingDecision making, in an organisation, is the process by which options are generated, judged and chosen, and by which someone becomes accountable for the choice.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
Strategy
Europe Wants Bigger Companies. Is Scale Becoming A New Competitive Advantage?
Brussels is rethinking whether size is a problem to police or a capability to build.
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