What Are the Key Managerial Insights Derived from Game Theory

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The Answer is The most important managerial insight is that behavior of agents can be predicted by knowing the elements of the game: the identity of rivals, the rules of interaction in the game, and the payoffs from actions. As a manager you can make better decisions if you place yourself in the role of a rival in order to anticipate the rival's best response is to your actions. Then use backwards induction to pick the most profitable action anticipating the response of your rivals. Other insights include taking advantage of a first mover advantage by moving first, and understanding that repetition facilitates cooperation.

What Are the Key Managerial Insights Derived from Game Theory

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