Game Theory and Business Strategy

2 credits · Owen Graduate School of Management

Game theory is a discipline that offers a systematic way of analyzing problems of strategic behavior in interactive situations. This course develops basic concepts from game theory and applies them to business strategy. Some of the concepts to be considered include (1) decision tree analysis; (2) looking forward and reasoning backward; (3) anticipating the moves of the rival; (4) inducing cooperation; (5) strategic use of commitments, threats, promises, and credibility; (6) preemptive moves and deterrence; and (7) creating and using one's reputation strategically. The strategic significance of these concepts will be demonstrated through business case studies. [2]