Unformatted text preview: The Strategist 5 Adam Brandenburger
J.P. Valles Professor, NYU Stern School of Business
Distinguished Professor, NYU Polytechnic School of Engineering
Member, NYU Institute for the Interdisciplinary Institute of Decision Making
Associated Faculty Member, Center for Data Science We con6nue with the duality between compe66on and coopera6on To be a useful way of talking about this duality, game theory needs to treat both compe66on and coopera6on as basic When we use the language of the game matrix, we start from individual ac6on focused on individual outcomes (“compe66on”) But coopera6on is naturally present, too, since mutually beneﬁcial outcomes may arise 3/1/15 11:23 2 When we use the language of the characteris6c func6on we start from joint ac6on focused on joint outcomes (“coopera6on”) But compe66on is naturally present, too 3/1/15 11:23 3 Added value of player !! : The Added-‐Value Principle says that the overall pie ! ! !
can be divided in any way that obeys the condi6on that no player !!gets more than its added value AV! ! 3/1/15 11:23 4 ...
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- Spring '15
- NYU Polytechnic School of Engineering, NYU Polytechnic School, NYU Stern School, NYU Stern School of Business, J.P. Valles Professor, NYU Institute