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0. Introduction

1. Game Theory – Definitions and Assumptions

2. Games – Structure and Examples

2.1. Example 1 – Sequential game – Strategic Entry Deterrence

2.2. Example 2 – Sequential game – Strategic Entry Deterrence with 3 players

2.3. Example 3 – Simultaneous Game – Prisoner’s Dilemma

2.4. Example 4 – Simultaneous Game – Prisoner’s Dilemma in two business games

2.5. Example 5 – Combining Sequential and Simultaneous Game and Dominant Strategy

2.6. Example 6 – Iterative Dominance and Nash Equilibrium

2.7. Example 7 – Uncertainty and Expected Payoff

2.8. Example 8 – Repeated Games and Mixed Strategies

2.9. Other games

3. Game Theory Benefits

4. Discussion and Limitations

4.1. Game Theory as Competitive Advantage

4.2. The difficult part for managers

4.3. Influence of payoffs in the decision-making process

4.3.1. Understanding the real utilities and competitors’ behavior

4.3.2. Understanding the composition of payoffs – second example

4.3.3. Considering managerial styles

4.4.1. Example 1 – Kiwi Airlines

4.4.2. Example 2 – Holland Sweetener Company

4.5.1. A good example – Ware Medical Corporation

4.5.2. Some suggestions to improve the managers’ ability of using Game Theory

5. Conclusion

6. References

Appendix A – Chronology of Game Theory

Appendix B – ComLabGames and Experimental Methods