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?



  • You’re hungry and ready to eat. What’s for lunch?

    What you choose to eat depends on your environment, that is, the context in which your desire to eat occurs: Where you are, what’s available nearby, what you like to eat, how much money you have, how hungry you are, and so on.

    Imagine the first guy who opened a restaurant. Without any competition, he didn’t have to offer a very large variety of food, nor even make it taste very good for that matter, to win people’s business. On the other hand, someone who opens an eatery today in San Francisco better offer a fantastic dining experience; otherwise her business will crash and burn. Not only must she offer fantastic food, but her eatery must be open whenever people want to eat; she must provide a clean and welcoming venue, offer fantastic service to diners, not to mention delivery for people who want to eat at home; and she must do all this while still maintaining reasonable prices.

    In today’s world, competition for customers of most goods and services has become fierce, indeed. Over time, more information and better technology have enabled suppliers to better determine their customers’ needs and tailor goods and services provided to more completely meet those needs.