Winning the Hardware Software Game Winning the Hardware-Software Game - 2nd Edition

Using Game Theory to Optimize the Pace of New Technology Adoption
  • How do you encourage speedier adoption of your product or service?
  • How do you increase the value your product or service creates for your customers?
  • How do you extract more of the value created by your product or service for yourself?


gtDeveloped and studied extensively by many scholars since the 1950s, Game Theory[1] is “the study of mathematical models of conflict and cooperation between intelligent rational decision-makers.”[2]

Game theory provides a tool for analyzing the structure of potential actions and resulting payoffs for various players involved in interactive situations. So game theory enables you (a player/participant) to understand how the implications of your actions affect your competitors’ positions, and thus what their likely responses to your actions will be. In this way, game theory enables you to better understand―and thus better optimize―moves and countermoves by you and your competitors over time as you navigate within a dynamic market environment.



[2] Myerson, Roger B. (1991). Game Theory: Analysis of Conflict, Harvard University Press, p. 1. Chapter-preview links, pp. vii–xi.