The principles of game theory can be applied in strategic planning by anticipating the reactions of competitors to any given situation. This involves studying the competition and their likely responses, and then making strategic decisions based on this information. This can help to level the playing field, or even provide a competitive advantage. An example of this can be seen in the television show, Survivor, where a contestant was able to win by strategically losing a challenge, thereby setting a series of events in motion that eliminated some of the competition.
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Have you ever had to dissect a complicated business scenario and were confused as to where to begin, or how to analyze the problem? Game theory is the...
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One of the strongest points in the book is known as the "Anticipation of Situation." The working theory is that there is always a mathematical formula that will predict the outcome of a game. The authors use an example from the television show, Survivor. Someone on the show decided they would "win by losing," and it actually worked. When the candidate on the show threw their chance to win, it set a series of events in motion that eliminated some of the competition, and allowed that candidate to eventually win the game in the end. According to the authors, by studying the competition and their reaction to any situation that is presented, it is possible to, at the very least, even the score, and at the very best, to come out on top as the winner in any contest.