Application of game theory to business strategy
Game theory is the
most popular mathematical tool, the spheres of application of which are
economics, finance, management, politics, and military science. The game theory
is a multi-faceted phenomenon, which, despite being theoretical in nature,
highly affects real-life business situations.
What is Coopetition strategy?
Brandenburger and Nalebuff (1995) believe that coopetition is a situation in which the firm must cooperate and compete at the same time.
The term coopetition to indicate a situation in which companies to consider both cooperative and competitive strategy to be successful; in these cases we have coopetitive games (win-win solution) (Padula, Dagnino, 2007).
Collaboration with competitors for innovation includes both a cooperative and a competitive relation between companies offering the same type of product for the same type of customer (Gnyawali, Fernandez, Le Roy, 2018).