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The Theory of Games

In: The Theory of the Firm

Author

Listed:
  • P. J. Curwen

Abstract

We have already noted that when a firm is planning its future strategy it must make allowances for the response of its competitors to any action which it takes. A strategy must therefore include not merely a set of opening moves but also further sets of counter moves which can be brought into play in order to redirect the firm towards the attainment of its original objectives after competitors have responded to its opening gambit. It is evident however that a similar line of reasoning can also be applied to each of its competitors since each of them in turn will need to develop a strategy which makes allowances for various alternative opening and counter moves by all other firms within the market.

Suggested Citation

  • P. J. Curwen, 1976. "The Theory of Games," Palgrave Macmillan Books, in: The Theory of the Firm, chapter 0, pages 61-70, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-15645-0_9
    DOI: 10.1007/978-1-349-15645-0_9
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