Game theory, while useful, has its limitations in business strategy. It assumes rational behavior and perfect information, which is not always the case in real-world scenarios. It also doesn't account for changes in the business environment or unforeseen events. Furthermore, it can be complex and difficult to apply correctly, especially in complex business situations.
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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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The authors also use entertainment as a way to get their points across. These stories are presented in the form of "tales," and one of the most memorable ones is called "Pick a Number." Readers are challenged to guess a number between 1 and 100 for five straight times to find the correct number that was chosen by them. The illustration concludes that this strategy is a good one, because the number setter and the searcher both know and understand the concepts behind finding the perfect information in game theory. That simply means "I know what you are thinking, and you know what I am thinking."