Game Theory in Business
Issue #46 of S+B has an interview with Prof. Nalebuff, well known for bringing game theory into the realm of business. According to N. there are 2 reasons why extending game theory to business requires an intellectual leap:
1. The game of business is not a zero-sum game (the success of one company does not require others to fail).
2. There are no explicitely defined rules in business (each firm can change the game/rules).
Moreover, Nalebuf warns that the behavior of businesspeople is not always rational, and inertia can be a powerful force to overcome.