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Ch3 – Game Theory & Ch9 – Being Ready for Change, G2 member, Later,…
Ch3 – Game Theory & Ch9 – Being Ready for Change
Conclusion
PARTS
Rules
custom
contracts
law
Scope
boundaries
Players
customers
suppliers
competitors
complementors
Tactics
perceptions
Added values
Game Theory
Plato : Unexamined life is not worth living
Beyond constraints + greater rewards
Ongoing process
evaluate each propose exhaustively and reliably
Game Theory
(One person’s fate depends on
what other people do)
Life is the game that must be played:
The truth as least, good friends, we know;
So live and laugh, not be dismayed
As one by one, the phantoms go
Edwin Robinson, Poet (1869-1935)
How much can you hope
to get in a game?
Fairness
Added Value
(The size of pie before and after the game)
Your powers vs. Others
Structure of the game
Adam's Card Game
(Adam keeps
26 black cards
;
one red card to each of 26 students)
Adam offers students $20 for each red card
Strategy of each student:
Take $50
Barry's Card Game
(Barry keeps
23 black cards
;
one red card to each of 26 students)
Barry offers students $20 for each red card
Strategy of each student:
Take $20
Sacking the Cities
The number of cities is
more than
the number of football teams
Cities vs. Football Teams:
Who has more power in a negotiation?
(undersupplying the market)
Your Added Value
(The size of pie with and without you)
The minimum payoff
you’re willing to accept
Risk and Uncertainty
How much the other players are willing to pay
to have you in the game
How well you play
The size of the pie
What is the problem?
Game Theorists
Mathematic Equations
Businessman/woman
Experiences
Perceptions
Induce
Take a decision
Good for oneself
Situation and Structure
Other side First
Adjust
Consult
Lot think
Best decision
Decison
Rule
Unpredictable games
Think different
Accept or Reject
Negotiation
No limit
Contract
Law
Custom
Agreement
Position
Weak
Scope
Feelings
Better than nothing
Strong
One more element of a game: Scope of the game
without boundaries is too complex to analyze
Example: Chess
No entirely, so to create opening, middle and end game
Example: Desktop Printers in 1989
Dot-matrix
low end
80 percent
ink-jet
in between
5 percet
laser
high end
15 percent
Rationality & Irrationality
Rational- if he does the best
One have better information than other
Remember to Look at a Game from multiple perspectives
When doing "crazy things", they think it's "irrational".
G2 member
SoM1 黃文勝 Victor
IBS3 邵渝恬 Katharine
IBS3 陳偉良 Wee Liang
IBS1 Loy
Later, Epson lost the dot-matrix sales to now!
Reason
by treating the laser printer game as seperate from dot-matrix printer game
failed to see low-price entry
Communication
The key to understand who has power
Boundaries
Total Unit Sales
Price
HP
Epson
2 ppl can be both rational and irrational