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How companies can use game theory to gain advantage in business negotiations

Wirtschaftsuniversität Wien, Library & Learning Center 0.004 Galerie10.03.2017, 17:00 - 20.02.2017, 19:00

Type Lecture / discussion
SpeakerJan Martin, Charlotte Winkelmayer, Bruno Bellovoda
Organizer Wirtschaftsuniversität Wien Forschungsinstitut Supply Chain Management

Game The­ory in ne­go­ti­ations

Game The­ory has con­trib­uted greatly to im­port­ant find­ings in the aca­demic world, espe­cially in Eco­nom­ics as vari­ous No­bel Me­morial prizes for Eco­nomic Sciences have proven. But still to date, it has hardly found its way into ac­tual busi­ness life. Gen­er­ally, there is quite a large gap to bridge between the­or­etic mod­el­ing of real life situ­ations and day-to-day activ­it­ies of com­pan­ies.

However, when look­ing at one of the key activ­it­ies of any busi­ness – ne­go­ti­ations between Sales and Pro­cure­ment – prac­tical ap­plic­a­tion of the­or­et­ical know­ledge ac­tu­ally works quite well.

In­nov­at­ive com­pan­ies have star­ted to ap­ply Game The­ory to sys­tem­at­ic­ally pos­i­tion them­selves into more fa­vor­able situ­ations. In cases of sig­ni­fic­ant mar­ket power, com­pan­ies use Game The­ory to com­pletely break with con­ven­tional forms of ne­go­ti­ation and define rules of ne­go­ti­ation to their max­imum ad­vant­age (“mech­an­ism design”).

A.T. Kear­ney have suc­cess­fully sup­por­ted mul­tiple cli­ents in design­ing and im­ple­ment­ing Game The­ory based ne­go­ti­ations and are eager to share and dis­cuss their in­sights from a prac­tical per­spect­ive.

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