KS_Group 19 Thinking Strategically

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    Thinking Strategically

    Avinash Dixit & Barry Nalebuff

    Presented by:Vishwas Shetti 12037Ruchit Shah 12038

    Group 19

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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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