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Metagame analysis of competitive strategy

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  • Biplab K. Dutta
  • William R. King

Abstract

The need for effective competitive strategy planning for a firm's survival and growth has long been recognized to be important. The identification and selection of good, or robust, market strategies must be based on the anticipation of the likely strategies of significant competitors, who should ideally be visualized as undergoing a similar process of assessing their own and other's goals and probable strategies. This paper reviews and evaluates the traditional economic and game theoretic approaches to competitive strategy analysis and presents an application of metagame analysis—an approach which has not previously been used in the strategic business environment. This approach, which appears to have some significant advantages over both economic and game theoretic approaches has been utilized and evaluated in a business firm (Dutta and King, forthcoming). An illustration of its use, which is based on a real‐world application, is discussed.

Suggested Citation

  • Biplab K. Dutta & William R. King, 1980. "Metagame analysis of competitive strategy," Strategic Management Journal, Wiley Blackwell, vol. 1(4), pages 357-370, October.
    • Handle: RePEc:bla:stratm:v:1:y:1980:i:4:p:357-370
    DOI: 10.1002/smj.4250010406
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    Cited by:

    1. Hohler, J., 2018. "Reconstruction of empirical strategies using content analysis - an application to the dairy industry," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277123, International Association of Agricultural Economists.
    2. Patrick Reinwald & Stephan Leitner & Friederike Wall, 2021. "Limited intelligence and performance-based compensation: An agent-based model of the hidden action problem," Papers 2107.03764, arXiv.org.

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