Thinking Strategically

Avinash Dixit & Barry Nalebuff Click to edit Master subtitle style

Presented by: Vishwas Shetti Ruchit Shah

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Group 19

About the Authors

Avinash Dixit

Professor of Economics at Princeton University Along with Thinking Strategically, he is the author of eight other books. A graduate of Bombay University and Cambridge University, he earned his doctorate at MIT. He has won Princetons Economics Department teaching prize and the Von Neumann Award from the Budapest University of Economic Science and Public Administration.

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About the Authors

Barry J. Nalebuff

Professor of Economics and Management at Yale School of Management. Along with Thinking Strategically, he is co-author of two other books. He has extensive experience consulting with multinational firms.

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Book all About

Made for wide and general audience. Talks about game theory. How these strategies will have competitive edge over others.

Consists of 3 parts having 13 chapters with 12/12/12 numerous examples and cases.

Game theory?

Game Theory is a concept that deals with the formulation of the correct strategy that will enable an individual or entity to take an competitive edge over others that will allow one 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.

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Part I

Opens with examples draw from sports, religion , politics, international relations and business.

Develops Four rule of thumb that should be followed.

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Part I

Rule 1: Look Ahead and Reason Back Rule applies for a Sequential game. Eg. Travelling from Princeton to New York.

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Part I

Rule 2: Always play a dominant Strategy. Rule 3 : Always eliminate the dominated strategy until none exists. Rule 4 : Find an equilibrium, if one exists after accomplishing 2 and 3.

Eg. Price war of Coke vs Pepsi.

All these 3 rules apply for simultaneous move games.

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Part II

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 to yourself. 12/12/12

Part II

It is necessary for a player to be unpredictable or face consequences of a rival systematic behavior by accurately forecasting moves.

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Part III

Examines the notion of Brinkmanship. Brinkmanship Strategy of taking your opponent on the verge of disaster and compelling him to pull back.

Illustrate this concept with an example of successful brinkmanship practiced by President John F. Kennedy during the 1962 12/12/12 Cuban missile crisis.

Part III

In part III concepts & techniques of first two parts are applied to several strategic interactions.

Final Chapter presents number of case studies where readers can apply concepts learn before.

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Our views about the book

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 to remember from just one reading.

Indian Corporate leaders who are strategically adapt

Parle

35 % of the market share of Indian biscuit market. Have outplayed others over years Parle-G has become synonym for Glucose Biscuit.

Hero Moto Corp.

56% of the market share of overall two wheeler market. Karizma & Splendor are favorites in their

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