Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar

level: Level 1 of 10. Game theory

Questions and Answers List

level questions: Level 1 of 10. Game theory

QuestionAnswer
What is competitor intelligence?Competitive intelligence tracks the activity of direct and indirect competitors in a range of fields: general business activity, business development, strategy and tactics in different sectors or new activities (sometimes designed to confuse and mislead), market penetration, patent registration, research activity and so on.
What is business wargaming?Business wargaming is an experiential group exercise where an organization can pressure test an existing strategy. Business war games help you create new plans and ideas by role-playing the competitors’ strategy before making full-scale investments. Wargaming shakes things up, challenges norms, and takes a fresh look at the market through the lens of other key players.
Game theory: Action and reaction. How does strategy choices interact with the competitors? And why is game theory helpful to predict competitors move?Strategy choices interact with those of competitors. This suggests that each needs to consider not only their own moves, but also their competitors’ likely or potential counter-moves. Considering how your moves may cause competitors to react has implications for your choices i.e. your strategy. Game theory is particularly important where competitors are strongly inter-dependent (temporarily or permanently) Interdependence exists where the outcome of choices made by one player is strongly dependent on the choices made by others. Here anticipating counter-moves is vital to a strategy’s success Game theory helps reveal which competitor moves are more likely.
What is the prisoners dilemma?The "prisoner's dilemma" is a concept that describes a situation in which two people have competing incentives that lead them to choose a suboptimal outcome. Prisoners dilemma: Both win if they both keep their mouth shut. Each win if they blame the other without reciprocation. Example (See pic): Success of price cut depends on the responses of rivals: if rivals do not match, the price-cutter gains market share; but if rivals follow the price cuts, nobody gains market share and all players suffer from the lower prices.