Ten simple lessons in strategy from the games firms play

Simple game theory offers a number of important insights into strategic behaviour in a competitive business environment. Provides some flavour of the issues which can be addressed. Using a two‐firm framework, considers how some familiar and recurring business decisions can be analysed as games. Shows that by such means a number of apparently complex problems can be rendered tractable. The purpose of the exercise is to show that the logical processes on which game theory rests can be a valuable aid to strategy formulation.