Business executives love their euphemisms. When competitors slash prices, the boardroom buzzes with phrases like “aggressive pricing strategy” or “market repositioning.” The most popular dismissal? “It’s just a price war.” The phrase gets tossed around with a shrug, as if […]
“It’s Just a Price War” (No, It’s Bertrand Competition, and It’s Worse) Read More »
Picture two companies staring at each other across a market. One blinks first. The other watches, learns, and responds. Most people would bet on the second mover, the one with more information. They would be wrong. This is the strange
How to Calculate Your Competitive Edge Using the Stackelberg Model Read More »
Picture two lemonade stands on opposite corners of the same street. Each vendor watches the other, adjusting prices and production based on what they see across the asphalt. This scene captures something profound about how markets actually work that’s Cournot
Level Up Your Strategy: From Basic Economics to Cournot Competition Read More »
Traditional game theory rests on a beautiful but problematic assumption: everyone is perfectly rational, and everyone knows that everyone else is perfectly rational, and everyone knows that everyone knows this, stretching into infinity. It’s an elegant foundation for mathematical proofs,
When ‘Rational’ Isn’t Enough: Why We Need Cognitive Hierarchy Theory for Real Life Read More »
In the highly competitive business environment of today, companies are constantly confronted with strategic decisions not only on their own choices but also on the actions of their competitors, suppliers, customers, and other market participants. Non-cooperative game theory emerges as
How Successful Businesses Use Non-Cooperative Game Theory Read More »