We do provide guidance for translating the ideas into action. We begin
by offering several examples showing how strategic issues arise in a variety of
decisions. We point out some effective strategies, some less effective ones, and
even some downright bad ones. Then we proceed to build these examples into
a system or a framework of thought. Later, we take up several broad classes
of strategic situations — such as bargaining and tendering — where you can
see the principles in action. The examples may range from the familiar,
trivial, or amusing — usually drawn from literature, sport, or movies — to the
frightening — nuclear confrontation. The former are merely a nice and
palatable vehicle for the game-theoretic ideas. As to the latter, at one point
many readers would have thought the subject of nuclear war too horrible to
permit rational analysis. But with the cold war gone, we hope that the gametheoretic
aspects of the arms race can be examined for their strategic logic in
some detachment from their emotional content.
By the end of the course we hope that you will emerge a more effective
manager.
As preparation, we present ten tales of strategy from different aspects
of life and offer preliminary thoughts on how best to play. Many of you will
have faced similar problems in everyday life, and will have reached the
correct solution after some thought or trial and error. For others, some of the
answers may be surprising. But surprise is not the primary purpose of the
examples. Our aim is to show that such situations are pervasive, that they
amount to a coherent set of questions, and that methodical thinking about
them is likely to be fruitful. In the course we develop these systems of
thought into prescriptions for effective strategy. Think of these tales as a
taste of dessert before the main course. They are designed to whet your
appetite, not fill you up.