GAME ...to fame or shame..!!

If you win the game you shoot to fame, if you lose you shoot to shame.. and that's how the world is destined to run!! I am referring not only to the ubiquitous sports arena but also to the subtle competition strategies/ploys played in the corporate jungle..!! Game theory in micro-economics course beautifully explained the importance of thinking with competitors' mind for success in either monopoly or oligopoly markets. This is one topic that made me think constantly and consistently differently - the following questions can be answered by conceptualizing micro-economics..

- Why is coke more costly at PVR than at Madhapur bakery?
- Why do profits sometime decrease even though the revenues increase?

- Is it always advantageous to move first into the market?
- What's the optimum strategy for procurement?
- Why firms charge low prices despite the potential fof higher profits at higher prices?

- Why some big firms are big and why some better firms find it difficult to grow beyond a certain stage?
(For Eg: TCS & Kanbay...........(ubiqutous dilemma of Incumbent and New Entrant..))

And many, many more interesting questions can be answered by a simple concept of Game theory - I never came across any such course so far which is so widely practical !!

tata...Satish

P.S: Nash equilibrium (Yeah..Nash (Russell Crowe) of Beautiful Mind) is a critical concept in Game theory!! At Nash equilibrium no firm will have an incentive to either increase or decrease its price..!!