Economics of Non-cooperative Game Theory

The Assignment: Critically examine how the economics of non-cooperative game theory complements the strategy choice of a company in a competitive game, thus avoiding strategic missteps. It is imperative that you use case study and Workshop case research in presenting your arguments. Assignment Objective: That part of strategic analysis based on game theory tools looks poised to gain in importance. The key objective is to write a critical essay outlining the overlap between the micro-economics and the game theoretic concepts introduced in this Module. Coupled with the practical case research undertaken by your group during the Workshop or coupled with the research you may have undertaken in support of your individual Workshop Alternate Assignment, the economics of game theory could reshape strategy. So, please do use real case study materials where appropriate. Hint: The best way to approach the assignment is to imagine that the essay is to be read by senior management. Their concerns may have to do with (i) market entry (ii) product launch (iii) challenges of technology or (iv) prices. So, proceed to analyze the market-as-a-game, identify and filter the competitive threat, assess the action-reaction sequence of events and evaluate your results. And always provide a risk assessment of the likely competitive threats facing a company on choice of strategy. Remember: You are an MBA consultant. Here is an opportunity to reflect on both the research undertaken by you at the Workshops and on the learning obtained in the preparation of your assignments for this Module. In any consultancy, you must try to impress upon the team. One way to do that is to convince them of the value-added of applying economic concepts and economic reasoning from game theory and transactions cost economics to an evaluation of their company strategy.

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