Game theory began with study of zero-sum games (win-lose as in chess or war). Much of the more recent work has focussed on how conflict can be transformed to co-operation (win-win). Businessmen, especially those under American influence, have been traditionally weaned on I-can-win-only-if-you-lose philosophy. However, empirical observation has shown that firms do not always have to compete. Live and let live has spurred growth of industries benefitting all. Yet, there are times when firms have to fight for survival. The theory of games provides guidelines on when to fight and when to co-operate?
Here are two examples of game theory in practice.