Out-think! : How To Use Game - Theory To Outsmart...

A company offering a 10-year warranty is signaling high product quality. A low-quality competitor couldn't afford to do that, making the signal credible and outsmarting the competition's marketing. The Bottom Line

Stop looking for the "best" move in a vacuum. Instead, ask: "Given what my opponent is likely to do, what is my best response?" If everyone is doing the same thing, you’ve found the equilibrium. To outsmart them, you must find a way to change the "rules" of the game so that the equilibrium shifts in your favor. Out-think! : how to use game theory to outsmart...

To outsmart someone, you must "signal" your intentions through actions that have a cost. This is called Signaling . If you take an action that would be too expensive or risky if you were lying, people will believe you are telling the truth. A company offering a 10-year warranty is signaling