Competitive Strategy August 8 - 31

August 8
why we should take actions of others into account when we make our own strategic decisions, because we don not act in a vacuum. we act, and our actions will trigger reactions by others if we're smart, if we think strategically then we can make anticipations about what this reaction is going to be when making our own decisions we discussed simultaneous games and we now know what a game matrix is we now know how to find dominant strategies and how to find dominated strategies, and eventually a Nash Equilibrium we also looked at the story of ET and we looked at Lufthansa and Deutsche BA these are examples of sequential games which we draw in the form of a game tree and we can analyze it by using a tool, a very powerful tool, called backward induction, which means we look at the game at the very end. we solve the end of the game, and then we move forward and from this we were able to distinguish between threats that are credible and threats that we shouldnt necessarily believe, that are basically cheap talk