Game theory can be used to analyze complex business problems by predicting the outcome of a situation based on the actions and reactions of the competition. It involves studying the competition and their reaction to any situation that is presented. This can help to even the score or even come out on top as the winner in any contest. For example, in the television show Survivor, a candidate decided to 'win by losing', setting a series of events in motion that eliminated some of the competition and allowed them to eventually win the game.

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One of the strongest points in the book is known as the "Anticipation of Situation." The working theory is that there is always a mathematical formula that will predict the outcome of a game. The authors use an example from the television show, Survivor. Someone on the show decided they would "win by losing," and it actually worked. When the candidate on the show threw their chance to win, it set a series of events in motion that eliminated some of the competition, and allowed that candidate to eventually win the game in the end. According to the authors, by studying the competition and their reaction to any situation that is presented, it is possible to, at the very least, even the score, and at the very best, to come out on top as the winner in any contest.

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The Art of Strategy

Have you ever had to dissect a complicated business scenario and were confused as to where to begin, or how to analyze the problem? Game theory is the...

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