Modeling, game theory, and strategic management

Abstract

This paper examines the potential usefulness of game-theoretic modeling for the development of theory in strategic management. It is argued that there is significant potential for the development of ‘metaphorical’ models that capture the broad qualitative features of settings involving strategic interactions. The paper discusses the positive attributes of mathematical modeling, the nature and role of game-theoretic modeling, and its potential for contributing to empirical work and to providing advice to managers.

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