Abstract
Abstract If This Book has been successful, it has persuaded you that game theory is a useful tool for thinking about business situations. It is of course a limited tool. It cannot provide all the answers. The world is !fire complicated than any game-theoretic model. No real-life decisions can safely be left to game theory to answer. But game-theoretic analysis can be a useful tool, along with other kinds of analysis, in the decision process. Game theory is a tool for thinking about interactive situations, where what one person should do depends on what others do, and no one individual controls the outcome. Thinking strategically involves recognizing the way in which the your decisions interact with the other players’ decisions. It means looking ahead, anticipating the others’ plans. And it requires facing up to uncertainty, taking actions before you know all you might want to know about what the consequences of your action will be. Deciding your best action, as we have seen, involves putting yourself in the others’ shoes: you must predict the others’ actions before you can make an intelligent decision on what action to take.
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