====== Competitive Strategy ======

  * Source: https://www.coursera.org/learn/competitivestrategy/outline?module=WeFmF
  * From **Université Louis-et-Maximilien de Munich (LMU)**, by **Tobias Kretschmer**

===== Take care of your competitors =====

==== Simultaneous Games ====

  * A strategy is a player's plan of actions in a "game".
  * Important parts of a game are: **players, actions, payoffs, and rules**.

  * You can usually rely on the other players having a **dominant strategy**.
  * **Dominated strategy**: a strategy that never does better that a given other strategy (eg. the dominant one).
  
  * When we have a game matrix then the idea is to eliminate the dominated strategies.

  * **Nash equilibrium** = a combination of strategies such as no player can deviate unilaterally from his current strategy to improve his payoffs.
  * We can have a **Nash Equilibrium** without every player having a dominant strategy.
  * Prisoner's Dilemma : when nash equilibrium is not the best option the players could get if they were working together.
  
 ==== Sequential Games ====

  * Sequential games == Dynamic games (eg. games with a time aspect).
  * We draw **game trees** in that case.
    * First decision start the game
    * Then for each decision, the other player can take its own decision.
    
  * **backward induction** : simplification of sequential game.
    * eliminating options that do not maximize profit.