Game theory contributes to the field of strategic management by providing a mathematical framework for predicting the outcome of competitive situations. It allows managers to anticipate the reactions of competitors to different situations, which can help in devising strategies that can lead to a competitive advantage. For instance, in the example from the TV show Survivor, a contestant strategically 'won by losing', setting off a series of events that eliminated competition and eventually led to their victory. This demonstrates how understanding and anticipating the actions and reactions of others can lead to strategic success.
Have you ever had to dissect a complicated business scenario and were confused as to where to begin,...
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