Game theory

Game theory has also been proposed as core to strategic thinking and core to managing uncertainty. Turbulence, change, and unpredictability are constantly challenging business. These are both internal and external factors.

Policy makers, strategists, and executives are always looking for tools to minimise the uncertainty and develop strategies that confront the challenges and maximise shareholder wealth through performance. One such technique is to look to game theory.

Game theory uses mathematical modelling and techniques such as probability to anticipate the response of competitors and other players and the reaction to the strategy.