The game to play: expanding the co‐opetition proposal through the strategic games matrix

Abstract

PurposeUsing Brandenburger and Nalebuff's 1995 co‐opetition model as a reference, the purpose of this paper is to seek to develop a tool that, based on the tenets of classical game theory, would enable scholars and managers to identify which games may be played in response to the different conflict of interest situations faced by companies in their business environments.Design/methodology/approachThe literature on game theory and business strategy are reviewed and a conceptual model, the strategic games matrix (SGM), is developed. Two novel games are described and modeled.FindingsThe co‐opetition model is not sufficient to realistically represent most of the conflict of interest situations faced by companies. It seeks to address this problem through development of the SGM, which expands upon Brandenburger and Nalebuff's model by providing a broader perspective, through incorporation of an additional dimension (power ratio between players) and three novel, respectively, (rival, individualistic, and associative).Practical implicationsThis proposed model, based on the concepts of game theory, should be used to train decision‐ and policy‐makers to better understand, interpret and formulate conflict management strategies.Originality/valueA practical and original tool to use game models in conflict of interest situations is generated. Basic classical games, such as Nash, Stackelberg, Pareto, and Minimax, are mapped on the SGM to suggest in which situations they could be useful. Two innovative games are described to fit four different types of conflict situations that so far have no corresponding game in the literature. A test application of the SGM to a classic Intel Corporation strategic management case, in the complex personal computer industry, shows that the proposed method is able to describe, to interpret, to analyze, and to prescribe optimal competitive and/or cooperative strategies for each conflict of interest situation.

Coopetition in the Operating of the Trade Fairs Market

“…Also looking at coopetition in terms of the process, one can notice that with the passage of time, the shape of the agreement being its basis changes. The fact that the participants of the strategy of coopetition are usually natural competitors may point to the short-term dimension of these activities (because in the long run it is more difficult to find common goals), but market practice shows that they are often assigned a strategic dimension (Costa et al, 2009).…”