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Biform Games

Author

Listed:
  • Adam Brandenburger

    () (Stern School of Business, New York University, 44 West Fourth Street, New York, New York 10012)

  • Harborne Stuart

    () (Graduate School of Business, Columbia University, 3022 Broadway, New York, New York 10027)

Abstract

Both noncooperative and cooperative game theory have been applied to business strategy. We propose a hybrid noncooperative-cooperative game model, which we call a biform game. This is designed to formalize the notion of business strategy as making moves to try to shape the competitive environment in a favorable way. (The noncooperative component of a biform game models the strategic moves. The cooperative component models the resulting competitive environment.) We give biform models of various well-known business strategies. We prove general results on when a business strategy, modelled as a biform game, will be efficient.

Suggested Citation

  • Adam Brandenburger & Harborne Stuart, 2007. "Biform Games," Management Science, INFORMS, vol. 53(4), pages 537-549, April.
  • Handle: RePEc:inm:ormnsc:v:53:y:2007:i:4:p:537-549
    as

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    File URL: http://dx.doi.org/10.1287/mnsc.1060.0591
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    References listed on IDEAS

    as
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    13. Carl Shapiro, 1989. "The Theory of Business Strategy," RAND Journal of Economics, The RAND Corporation, vol. 20(1), pages 125-137, Spring.
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