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Games Businesses Play: Cases and Models

Author

Listed:
  • Pankaj Ghemawat

    (IESE Business School)

Abstract

Game theory has come to dominate industrial organization economics, but business strategists continue to debate its usefulness. So far, empirical work on the application of game theory to business strategy has been too limited to force a consensus. As a (partial) remedy, Games Businesses Play uses detailed case studies of competitive interaction to explore the uses and limits of game theory as a tool for business strategists. Because they are analytical rather than descriptive, the case studies are not typical teaching cases. The cases are paired with customized game-theoretic models that cover a wide range of commitment decisions, from short-run commitments such as price to longer-run commitments such as capacity expansion and reduction, product and process innovation, and battles for market share. A variety of quantitative and qualitative techniques are used to test the models' predictions on case data. In addition the book sheds light on a number of other issues important to strategic management, including the resource-based view of the firm and the emergent theory of dynamic capabilities.

Suggested Citation

  • Pankaj Ghemawat, 1997. "Games Businesses Play: Cases and Models," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262071827, April.
    • Handle: RePEc:mtp:titles:0262071827
    as

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    More about this item

    Keywords

    game theory; case data; strategic management;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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