Games and Strategies for Business

Code

BUSI4040

School

Business

Level

4

Credits

10

Semesters

Spring UK

Summary

Game theory is used to analyse and predict the outcomes of complex situations involving strategic interactions -i.e., interactions in which the right choice for us depends upon the choices made by others, and our choices affect how others behave. Managers face strategic interactions within the firm (with other divisions and subordinates) and outside the firm, with suppliers, competitors, customers, regulators, and even capital markets. Examples include pricing decisions in oligopolistic markets, entry or exit decisions, incentive schemes, and optimal timing to release information.

In this module, you will learn the essential tools of game theory, discover their use by applying them to a variety of business situations and cases, and find out which are its limitations. It aims at developing your ability to think ahead and to take into account other people’s possible responses to your actions. More importantly, we’ll discuss how to choose or design the best “game”. After all, “successful business strategy is about actively shaping the game you play, not just playing the game you find” (Brandegurger and Nalebuff, 1995).

Target Students

Only available to students on MBA courses in the Business School.

Classes

• One 4-hour lecture
• One 7-hour lecture

This module is delivered through a series of lectures.

Assessment

• 30% Group Project: 2,000 words.Reassessment details: Individual Project, 3,000 words.
• 70% Coursework: 3,000 words.Reassessment details: Individual Project, 3,000 words.

Assessed by end of spring semester

Educational Aims

Learning Outcomes

Knowledge and understanding
This module develops a knowledge and understanding of:

• People - the management and development of people within organisations.
• People - strategic and operational HRM, meeting future organisational requirements, people development, HR systems.

Intellectual skills
This module develops:

• Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately.
• Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions.

Professional practical skills
This module develops:

• Effective performance within team environments and the ability to recognise and utilise individuals' contributions in group processes and to negotiate and persuade or influence others; team selection, delegation, development and management. Leadership and performance management: selecting appropriate leadership style for different situations; setting objectives, motivating, monitoring performance, coaching and mentoring.

Transferable (key) skills
This module develops:

• High personal effectiveness: critical self-awareness, self-reflection and self-management; time management; conflict resolution, displaying commercial acumen, the ability to continue to learn through reflection on practice and experience.
• Soft skills: understanding the needs of others and empathy towards them; sensitivity to diversity in people and in different situations.

Conveners

• Dr Luciana Nicollier