In a detailed article, the German business magazine Manager Magazin describes the decision-making processes that takes place in company boardrooms, and the – unjustly – bad reputation given to scepticism among executives. It further points out strategies to make better and more profound management decisions. Marcus Schreiber, CEO at TWS Partners, introduces an economic and game-theoretical point of view to the discussion. Game theory can facilitate decision-makers’ analysis and evaluation of various alternative actions, and helps them to “think backwards” from the end goal. This is demonstrated with the example of complex auctions: Every bid triggers subsequent actions from the competitors, and therefore, these other “players” shouldn’t be ignored in the decision-making process.
In the past couple of years, big Tech companies in Silicon Valley have increasingly recruited game theory experts, for example to forecast their users’ behaviour by translating big data into smart data and developing new strategies.
The full article can be found in the current issue (8/2017) of Manager Magazin and online.