ECON 221 - Introduction to Strategic Thinking • Examples of things we ʼ ll see in this course • “Hot Hand” pertains to the likelihood of a success streak • “Leaders and Followers” • IBM - in the 60 ʼ s and 70 ʼ s was a big name brand (didn ʼ t come up with the PC until after Apple) • Leading company, by this event suddenly becomes the follower in its ±eld • Games, business and strategic thinking depends on the context • In²exibility can sometimes payoff in a a gaming scenario (i.e. bargaining); but at times it can back±re (i.e. strategy of Take-it-or-leave-it) • Prisoners ʼ Dilemma • Carrot and Stick (carrot means inducements; represents them) (sticks means to pick on or punish detractors) • Ford used the Carrot part of this method (paying an ef±ciency wage to those who created a larger output) because there was absenteeism (slacking off)
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