Step 4: Revealing Insights with Game Theory Analysis
What is Game Theory?
Game theory is the branch of applied mathematics and economics that studies strategic situations where there are several stakeholders, each with different goals, whose actions can affect one another.
Since 1994, there have been four Nobel prizes awarded for work in the field of game theory. There are many different branches of game theory but Open Options specializes in the field known as asymmetric, prescriptive-descriptive game theory, based on the academic work of Dr. Niall Fraser. This branch of game theory is ideally suited to the kind of complex multilateral challenges that businesses face.
Millions of Outcomes Analyzed
After Open Options has guided the client’s team to assemble their best knowledge of the situation in a clear structured format, Open Options employs its powerful game theory tools to analyze the issue and to develop insights and strategies that allow the client to achieve its best attainable outcome.
The game theory analysis does not view competitors as static lists of strengths and weaknesses. Instead, the analysis provides accurate predictions of player behavior and players' reactions to the client’s initiatives.
Open Options’ proprietary game theory software and analytic tools can evaluate many potential strategies and potential counter-strategies, and explore millions of ways the issue could play out. This process reveals the most likely outcome of the strategic issue, possible danger outcomes that could be caused by a strategic misstep, and a path to a client’s best attainable outcome. Important tactical indicators are also developed, including often counter-intuitive insights about the dynamics among players.
Capable of Handling Radically Different Perspectives
Open Options’ tools can also explicitly deal with the seemingly “irrational”. The models are built to reflect the diverse outlooks and priorities of different players, including the personalities and emotional responses of individuals. Therefore, not only can this process handle issues in which clients face other organizations with similar outlooks, but is also ideally suited for issues involving foreign jurisdictions, new market entrants, firms from other industries and other organizations with radically different priorities.