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.
the approach can indicate the credibility of signaled intentions and the probability that threat strategies will be successful.
it has the merit of ensuring that the range of possible outcomes are made explicit, showing how firm's conduct in terms of the strategies which they use and the structure of the market are determined simultaneously.
The theory incorporates the most recent developments in industrial economics and, because of its widely encompassing framework and ability to analyze the processes of change, is clearly appropriate for examine tourism market structures, conduct and performance.