Applied Game Theory for Business

1) Gain a comprehensive grasp of the fundamental concepts and principles of game theory.

2) Understand different types of games, such as cooperative vs. non-cooperative, zero-sum vs. non-zero-sum, and simultaneous vs. sequential games.

3) Learn how to apply game-theoretic concepts to strategic thinking and decision-making in a business context.

4) Develop the ability to analyze competitive situations, predict competitor behavior, and make informed strategic choices.

5) Apply game theory to address practical business challenges such as price wars, auctions, supply chain negotiations, R&D competition, and entry deterrence.

6) Understand the game-theoretic approaches to negotiation, including bargaining models, mediation, and arbitration.

7) Explore the intersection of behavioral game theory and strategic management, focusing on how human behavior and cognitive biases impact strategic decisions.

Session Plan:

Module 1:
Introduction to game theory
Games, Players, Strategies, Payoffs, Nash Equilibrium: Concept and examples, Dominant Strategies: Identifying and applying dominant strategies, Pareto Efficiency: Understanding and achieving optimal outcomes

Types of games
Cooperative vs. Non-Cooperative Games
Zero-Sum vs. Non-Zero-Sum Games
Simultaneous vs. Sequential Games: Differences and Applications

Module 2:
Fundamentals of Strategic Thinking
SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats
Porter’s Five Forces: Analyzing industry structure and competition
Value Chain Analysis: Understanding activities that create value
Balanced Scorecard: Performance measurement framework

Linking game theory to strategic thinking
Competitive Advantage: Leveraging game theory for strategic advantage
Strategic Interaction: Understanding interdependence in business decisions

Module 3: Case Study Analysis – Game Theory in Real-World Scenarios
Price Wars in the Airline Industry: Case study: American Airlines vs. Southwest Airlines
Bidding Strategies in Auctions: Exploring Auction Dynamics and bidder behavior in Common Value Auctions Case study: FCC spectrum auctions
Supply Chain Negotiation

Module 4: Importance of Dynamic Games and Sequential Decision-Making in Business
Extensive Form Representation: Understanding Game Trees
Subgame Perfect Equilibrium: Finding equilibria in sequential games
Backward Induction: Solving games through backward reasoning
Real-world applications
R&D Competition: Strategic investments in research and development
Entry Deterrence: Strategies to prevent new competitors from entering the market

Module 5: Application of Repeated Games and Reputation Effects in Business

Theory of repeated games
Folk Theorems: Conditions under which cooperation can be sustained
Tit-for-Tat Strategy: Simple and effective strategy in repeated games
Reputation Building: Importance of long-term strategic considerations
Brand Management: Building and maintaining a brand’s reputation
Long-Term Contracts: Using repeated interactions to foster cooperation

Module 6: Strategic Moves and Commitment
Strategic Alliances: Forming partnerships for mutual benefit
Joint Ventures: Collaborative efforts between companies to achieve strategic goals
Real-world example: Sony and Ericsson joint venture in mobile phones

Module 7: Integrating Game Theory into Business Practice
Behavioral Game Theory and its implication for business
The role of bounded rationality, Fairness and Reciprocity in transaction
Consumer Behavior: Understanding and Predicting Customer Choices
Organizational Behavior: Aligning employee incentives with company goals

Module 8: Negotiation and Conflict Resolution
Game-theoretic approaches to negotiation
Bargaining Models: Nash bargaining solution, alternating offers
Mediation and Arbitration: Resolving conflicts through strategic negotiation
Labor Negotiations: Strategies for successful bargaining with unions
Dispute Resolution: Techniques for resolving conflicts within organizations

This program is ideal for

• Business Executives and Managers 
• Strategic planners
• Government and Public Policy Professionals

1. Registration fees include the following:

   For all the participants:

   • Classroom sessions
   • Reading material
   • Registration kit
   • Internet and Library access
   • Hard Copy Certificate for Course Completion at the end of the programme

   Residential participants:

   • Single occupancy AC rooms in the MDP hostel
     Check-in and check-out time: The earliest check-in time 3.00 pm (one day before program commencement
     The latest checkout time is 10.00 am (one day after program completion)
   • Tea, breakfast, Lunch, dinner in working hrs.

   Non Residential participants:

   • Breakfast, Working Lunch, tea & snacks

2. Refund policy

   Fees once paid can be adjusted for 1 financial year against future nominations only. In case a course is canceled on account of inadequate participation or any other unforeseeable reasons, the participants will be informed of the cancellation by e-mail or Fax and the fee will be refunded. IIM Mumbai will not be liable for any other expenses incurred by the company or the participant. Any transaction fee will not be refunded.

3. Individual Registration

   If you wish to register & make payment, please click here Register

4. Company-sponsored / Bulk Registration:

   • In the case of company-sponsored candidates, please share the nomination list and GST details to program@iimmumbai.ac.in for invoice generation.

     Download the INVOICE DETAILS FORM

   • Note: Discount is applicable for 5 or more participants from same organization against invoice.