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I'm looking to learn Game Theory. Anyone with knowledge in this space have good additional recommendations?
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Most corporate strategy/competitive strategy problems use game theory on a daily basis. Market entry, retaliation, oligopoly, monopoly, etc. are good examples. Game theory-heavy industries are the ones in a competitive balance. Think Coke/Pepsi, telecom, etc. Another way game theory helps is in building the right mindset: you assume that your opponent is just as rational and smart as you, and will be trying to predic…
Any chance of elaborating? I'm curious if GT is a 'real tool' (compared to, for example, SWOT analysis), or a high-level mindset?
A lot of the effects described in GT can be learned by practice and observation of human competitive behavior, but studying it gives you a much better understanding of why certain situations happen, or how competitors will react.
The market entry game (retaliate/accommodate) is usually the best example:
https://books.google.com/books?id=xhAACwAAQBAJ&pg=PA77&lpg=P...
Another example is signaling: when you publicly declare that you will match prices aggressively and will never be undercut, that's not actually a threat to your competitors, but a signal that if they keep prices high, you will as well, avoiding a price war.
Has anyone here applied Game Theory to a real-world productionized problem? I'm curious. There are many hypothetical situations where game theory is said to be useful, but I've never seen an application of it in real life.
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From what I understand, Game Theory is used in "mechanism design", or basically the design of auctions for things like the FCC spectrum auctions, or how facebook / google auction off ad slots. Not a mathematician so I don't have any great references, but a couple bits in the press about it: http://blogs.cornell.edu/info2040/2015/10/20/application-of-... https://www.wired.com/2015/09/facebook-doesnt-make-much-mone...
Just to add: A bit more about the type of auction design facebook was using at the time the article was written. https://en.wikipedia.org/wiki/Vickrey%E2%80%93Clarke%E2%80%9...
But seriously, auctions in general (ad auctions yes, but also many other "kinds" of marketplaces, like zillow for ex) are a super huge application of algorithmic game theory. I took a course in Algorithmic Game Theory with Eva Tardos, and she was constantly being asked by companies like Facebook for consulting on their auctions. Google also has a whole team of algorithmic game theory type people for their ads too.
Facebook actually has a meeting room named after her.
Earlier quoted context omitted.
Most corporate strategy/competitive strategy problems use game theory on a daily basis. Market entry, retaliation, oligopoly, monopoly, etc. are good examples. Game theory-heavy industries are the ones in a competitive balance. Think Coke/Pepsi, telecom, etc. Another way game theory helps is in building the right mindset: you assume that your opponent is just as rational and smart as you, and will be trying to predic…
Any chance of elaborating? I'm curious if GT is a 'real tool' (compared to, for example, SWOT analysis), or a high-level mindset?
Has anyone here applied Game Theory to a real-world productionized problem? I'm curious. There are many hypothetical situations where game theory is said to be useful, but I've never seen an application of it in real life.
You can find real-word applications for GANs (specially the Pix2Pix variety) in a lot of domains.
Has anyone here applied Game Theory to a real-world productionized problem? I'm curious. There are many hypothetical situations where game theory is said to be useful, but I've never seen an application of it in real life.
When big corps buy small startup just to kill it off because it might eat into their cake or because their competitor might buy them, that's game theory.
Someone could equally say the situation you described is 'strategy' or 'design' or 'product management' and it would be equally enlightening.
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Any chance of elaborating? I'm curious if GT is a 'real tool' (compared to, for example, SWOT analysis), or a high-level mindset?
The standard in antitrust law when evaluating a merger or acquisition is to write down a game theoretic model of competition, estimate the parameters of the model (consumers' tastes, degree of substitutability between products, etc.), and make projections of prices based on those parameters.
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Any chance of elaborating? I'm curious if GT is a 'real tool' (compared to, for example, SWOT analysis), or a high-level mindset?
More of a high-level mindset, since GT is more of an academic topic. A lot of the effects described in GT can be learned by practice and observation of human competitive behavior, but studying it gives you a much better understanding of why certain situations happen, or how competitors will react. The market entry game (retaliate/accommodate) is usually the best example: https://books.google.com/books?id=xhAACwAAQBAJ…