1. Strategic Thinking What is Strategic Thinking Game Theory
Applications to Business
Applications to Life
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

2. Survivor: Picking Sticks
Rules:
12 Sticks
During a player’s turn each person can pick 1-3 sticks.
Last person to move wins
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

3. Survivor: Picking Sticks
Is there a winning strategy?
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

4. The Cambridge May Ball Casino Night Roulette Play Money
Winner gets ticket to the ball
In the final round Barry has $700, and Eva $300
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

5. The Cambridge May Ball Roulette What should each person do?
Numbers 0-36
0 is green
1-36 odd numbers are Red, even are black
Betting $1 on Red wins with prob 18/37 and pays $2
Betting $1 on a multiple of 3 wins with probability 12/37 and pays $3.
What should each person do?
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

6. What do the May Ball and Survivor Games Have in common?
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

7. Forecasting Stock Performance
Bob is a veteran predictor of stocks. His predictions appear on a popular Web-Site Each Monday Morning.
Jim is unknown
If his stocks perform better than Bob’s he may attract attention
If his stocks perform the same or worse than Bob’s he remains unknown.
When should Bob post his picks on his web-site? How should he make his choices?
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

8. America’s Cup A two boat sailing race
The Australian boat starts out behind
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

9. It’s your move Charlie Brown
Lucy: “I’ll hold the ball, you come running up and kick it Charlie Brown”
Charlie Brown “This year I’m gonna kick the ball out of the universe.”
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

10. Look Ahead and Reason Back
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

11. New Cleaners & Fast Cleaners
Vacuum Cleaners
Existing company Fast Cleaner’s Vacuums
Potential Entrant: New Cleaners
Post Entry choices for Fast Cleaners
Accommodate entry
Fight a price war
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

12. New Cleaners & Fast Cleaners
Accommodate
$100,000 to New Cleaners
Fast Cleaners
Enter
Price War
$-200,000 to New Cleaners
Newcleaners
$0 to New Cleaners
Keep Out
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

13. New Cleaners & Fast Cleaners
Accommodate
$100,000 to New Cleaners
$100,000 to Fast Cleaners
Fast Cleaners
Enter
Price War
$-200,000 to New Cleaners
-$100,000 to Fast Cleaners
Newcleaners
$0 to New Cleaners
Keep Out
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

14. Bargaining: Ice-Cream Pie
Take-it-or-leave-it offers
The pie is melting
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

15. Politics and the High Road
Obama Wins
Clinton
Low Road
Clinton has
a chance
High Road
Obama
Clinton has
a chance
High Road
Obama has incentive to keep the decision a secret. The general principle is that for the look ahead and reason back solution to work, the second player must be able to observe the first.
Low Road
Clinton
Low Road
Obama Wins
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

16. 1984 Orange Bowl
Nebraska is undefeated, U. of Miami has one loss prior to the Orange Bowl
If Nebraska wins or ties the game it wins the national title
In the 4th quarter Miami led 31-17
Nebraska score two touchdowns
On the second touchdown Nebraska goes for the win by trying 2-point extra point. They fail, and lose.
Argue that they should have gone for two points on the first touchdown.
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

17. Dominant Strategies Professor Jones choosing the right grail
Baseball: 2-outs, 2-strikes, runner on first
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

18. Time and Newsweek Newsweek’s Choices AIDS Budget Time’s Choices
35* / 35**
70* / 30**
30* / 70**
15* / 15**
Illustrates a dominant strategy equilibrium
*Magazine sales for Time;
** Magazine sales for Newseek
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

19. A different situation Newsweek’s Choices AIDS Budget Time’s Choices
42* / 28**
70* / 30**
30* / 70**
18* / 12**
If your opponent has a dominant strategy…assume they will use it
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

20. Football 3* 7* 15* 9* 8* 10* Defense’s Strategies Counter Run
Counter Pass
Blitz
Offense’s Strategies
Run 3* 7*
15*
Pass 9* 8*
10*
Eliminate any dominated strategies from consideration, the re-examine and see if there are more.
* Offense’s expected yardage gain
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

21. Missile warfare C Iraqi Ship F B E A I H D American Ship G
Iraqi ship is about to fire a missile at the American ship
The American ship has missile defense. The anti-missile has only fuel for one minute
Missile goes in straight line or turns every 20 seconds H D
American
Ship G
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

22. Table of Hits and Misses
Iraqi Strategy A M E R I C N
1-IFCB
2-IFEB
3-IFED
4-IFEH
5-IHGD
6-IHED
7-IHEB
8-IHEF
1-ABCF H O
2-ABEF
3-ABEH
4-ABED
5-ADGH
6-ADEH
7-ADEF
8-ADEB
For American’s ….A2 is dominated by A4; A4 also dominates A3, A6 and A7
A1 is dominated by A8
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

23. Dominated Strategies Iraqi Strategy A M E R I C N H O 1-ABCF 2-ABEF
1-IFCB
2-IFEB
3-IFED
4-IFEH
5-IHGD
6-IHED
7-IHEB
8-IHEF
1-ABCF H O
2-ABEF
3-ABEH
4-ABED
5-ADGH
6-ADEH
7-ADEF
8-ADEB
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

24. Reduced Table of Hits and Misses
Iraqi Strategies
American
Strategies
IFCB
IHGD
ABED O H
ADEB
No dominated strategies left…no dominant strategies. But there may be an equilibrium.
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.

25. Nash Equilibrium Definition Feast: Too many equilibria Famine
Standards: Driving on the right side of the road.
Phone connection breaks off: Who calls back
Famine
Re-examine the Missile game
Mixed Strategies
This slideshow was written by Ken Chapman, but is substantially based on concepts from Thinking Strategically by Avinash K. Dixit and Barry J. Nalebuff, W.W. Norton 1991.