the ability to encompass insights from various schools of thought and to provide a dynamic analysis of tourism firms, industries and markets. Thus, it can incorporate the Austrian and Evolutionary schools'critiques of static equilibrium analysisi of markets.
The theory acknowledges that, when making business decisions, most firms consider the likely responses of competitors. Inter-firm differences in the extent of knowledge, the degree of cooperation or non-cooperation can be taken into account and simple one-off strategies or sequential adjustment to different moves by competitors can be examined.