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Suppose the game’s outcome is lousy…  What can you do?

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Presentation on theme: "Suppose the game’s outcome is lousy…  What can you do?"— Presentation transcript:

1 Suppose the game’s outcome is lousy…  What can you do?

2 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. The Cold War: Nuclear Deterrence Soviets U.S. Start Land War No War Nuclear 1*,-1** -100*,-100** 0*,0** *payoff for USSR, **payoff for US Conventional

3 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. Dr. Strangelove Soviets U.S. Nuclear -100*,-100** 0*,0** *payoff for USSR, **payoff for US Start Land War No War

4 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. The eight-fold path to credibility 1. Establish a reputation 2. Write contracts 3. Cut off communication 4. Burn bridges behind you 5. Leave the outcome to chance 6. Move in small steps 7. Develop credibility through teamwork 8. Employ mandated negotiating agents

5 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. Reputation  Israel’s refusal to deal with hijackers  Tax amnesty & the US Congress  Mayflower Furniture “127 years without a sale”

6 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. Contracts  Agree to penalties if you don’t follow through  Complications Nick Russo: “$25,000 to the charity of your choice if you catch me eating in a restaurant.”  Renegotiation  http://www.stickk.com/ http://www.stickk.com/

7 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. Cutting Off Communication  Death and Cecil Rhodes

8 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. Burning Bridges  Cortez burned his own ships upon arrival in Cempoalla, Mexico

9 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. Leaving the Outcome Beyond Your Control  Dr. Strangelove

10 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. Moving in Steps  Honor among thieves Event 1: A single million dollar transaction Event 2: A thousand transactions of $1000

11 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. Teamwork  Peer Pressure: Weight Watchers, AA  Romans: Falling Behind was a capital offense for soldiers

12 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. Mandated Negotiating Agents  A labor leader may have to deliver the gains he promised or lose his job


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