DROMB8122 Game-Theoretic Business Strategy
The course has three objectives.
1) Provide you with the theory to understand why a given company is (or is not) profitable. (For potential entrepreneurs, this theory becomes a tool to assess whether your proposed venture will be profitable in a competitive environment.)
2) Provide you with perspectives for assessing the sustainability of a given company’s profitability. We will place special emphasis on understanding and evaluating the key assumptions and judgments underpinning your assessments.
3) Enable you to identify the substantive issues behind the trends and frameworks in the strategy field.
To achieve these objectives, the course will utilize case discussions, exercises, and lectures. One of the key challenges of strategy is that decisions have to be made with limited and ambiguous information. Cases will provide us with a great way to simulate the ‘messiness’ of real-world decisions. Additionally, and concurrently, the course will provide an introduction to recent work in game theory providing formal foundations for the economics of strategy.