Game Theory

  • Read the article titled “Game Theory” at http://www.econlib.org/library/Enc1/GameTheory.html. In the article, the authors discussed a classic case of game theory (zero-sum games) of the Prisoner’s Dilemma (PD). There are many variations of this game in use. Suggest the manner in which organizations could apply PD to their business’ strategy formulation. Provide support for your response.
  • Refer to “Case 11 Ford and the World Automobile Industry in 2015” located in the “Excess Capacity” section, page 542 in your textbook, or use the Internet to research two to three (2-3) articles on the North American automobile and its market segments. Next, analyze the key ways that segmentation provides a competitive advantage or disadvantage to the North American automobile. Provide a rationale for your response.

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