Konkurranse

Finite games

Anyone who has studied economics and management has most likely learned about game theory. Game theory is a direction within the field that analyzes how actors (companies, states, individuals) act on each other's choices of action. The most famous game-theoretic situation is the Prisoner's Dilemma. In game theory, one operates with finite and infinite games. A finite game is a situation with a beginning and end, fixed participants, and defined rules. Examples of this are a football match or a single car sale. Infinite games, on the other hand, have both known and unknown participants. The rules can be changed during the game and the game has no clear end. Examples of infinite games are friendship, business and politics. Many companies operate with a mindset as if there is an end game. An example of this is companies where the aim is to beat the competition and become number 1 in the market. On the other side, you have companies that have a mindset where it operates in an endless game and where the only competitor is themselves and the focus is continuous improvement of their own products, services, culture and management. Overtime, you see that players with an infinite perspective eventually win over those with a finite perspective, simply because you survive longer. Here is a movie that tells strategies for achieving a final mindset: