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Thinking Strategically
Avinash Dixit & Barry Nalebuff
Presented by:Vishwas Shetti 12037Ruchit Shah 12038
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Avinash Dixit
Professor of Economics at Princeton University
Along with Thinking Strategically, he is the author ofeight other books.
A graduate of Bombay University and CambridgeUniversity, he earned his doctorate at MIT.
He has won Princetons Economics Departmentteaching prize and the Von Neumann Award from theBudapest University of Economic Science and PublicAdministration.
About the Authors
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Barry J. Nalebuff
Professor of Economics and Management at Yale
School of Management.
Along with Thinking Strategically, he is co-authorof two other books.
He has extensive experience consulting with
multinational firms.
About the Authors
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Made for wide and general audience.
Talks about game theory.
How these strategies will have competitiveedge over others.
Consists of 3 parts having 13 chapters with
numerous examples and cases.
Book all About
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Game Theory is a concept that deals with the
formulation of the correct strategy that will
enable an individual or entity to take ancompetitive edge over others that will allowone to win.
Any business is a game played against
competitors, or even against customers. Master the rules of the business you're in and
you'll win the game, so says Game Theory.
Game theory?
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Opens with examples draw from sports,
religion , politics, international relations and
business.
Develops Four rule of thumb that should befollowed.
Part I
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Rule 1: Look Ahead and Reason Back
Rule applies for a Sequential game.
Eg. Travelling from Princeton to New York.
Part I
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Rule 2: Always play a dominant Strategy.
Rule 3 : Always eliminate the dominatedstrategy until none exists.
Rule 4 : Find an equilibrium, if one exists afteraccomplishing 2 and 3.
Eg. Price war of Coke vs Pepsi. All these 3 rules apply for simultaneous move
games.
Part I
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Prisoner's Dilemma
Co-operation
Incentive to cheat even if agreement is made.
Tit for Tat or Eye for an Eye
Strategic Moves
Moves which are designed to alter action &belief of others in a direction favourable toyourself.
Part II
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It is necessary for a player to be unpredictable
or face consequences of a rival systematic
behavior by accurately forecasting moves.
Part II
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Examines the notion of Brinkmanship.
Brinkmanship Strategy of taking youropponent on the verge of disaster andcompelling him to pull back.
Illustrate this concept with an example ofsuccessful brinkmanship practiced byPresident John F. Kennedy during the 1962
Cuban missile crisis.
Part III
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In part III concepts & techniques of first two
parts are applied to several strategic
interactions.
Final Chapter presents number of case studieswhere readers can apply concepts learnbefore.
Part III
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Given its numerous example, its clear
exposition and its helpful insights it is an
engaging book.
It is both instructive and enjoyable to read.
Because it has numerous example hard toremember from just one reading.
Ourviewsaboutthe
book
t
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Parle
35 % of the market share of Indian biscuit
market.
Have outplayed others over years
Parle-G has become synonym for GlucoseBiscuit.
Hero Moto Corp.
56% of the market share of overall two wheelermarket.
Karizma & Splendor are favorites in their
n an orporate ea erswho are strategically
adapt
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