Competitive Dynamics and Business Strategy

Strategic analysts require a systematic approach to model and analyze their decisions, and firms often turn to game theory when thinking about competitive dynamics. This case gives students a game theory primer by putting them in the role of strategists working for Coca-Cola Enterprises who have been asked to determine how a planned bottling plant in Wisconsin will affect the company's profitability. Students learn the benefits of this approach as a strategic tool, and also explore recent advances in the behavioral aspects of game theory.