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A Review of Dixit and Nalebuff's Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life

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  • Brandenburger, Adam

Abstract

What is the best way to make decisions when the consequences depend not only on one's own actions, but also on what other people do? Dixit's and Nalebuff's "Thinking Strategically" explores this question using the tools of game theory. The book offers a number of principles for decision making in multiperson settings and illustrates the value of these principles with examples drawn from various arenas, including those of politics, business, war and sports. This review contains an overview of the contents of the book, paying particular attention to points of contact with business strategy. It goes on to discuss some of the successes and limitations of existing applications of game theory to business strategy. It then evaluates Dixit's and Nalebuff's contribution in light of this discussion. Copyright 1993 by MIT Press.

Suggested Citation

  • Brandenburger, Adam, 1993. "A Review of Dixit and Nalebuff's Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 2(2), pages 325-332, Summer.
    • Handle: RePEc:bla:jemstr:v:2:y:1993:i:2:p:325-32
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