4. The Right Game: Use Game The

https://hbr.org/product/right-game-use-game-theory-to-shape-strategy-harvard-business-review-classics/12307E-KND-ENG

1. rule-based games: players interact according to specified rules of engagement 

   freewheeling games: players interact without any external constraints

2. principle for rule-based games: to every action, there is a reation

3. principle for freewheeling games: you cannot take away from the game more than you bring to it

4. a player's added value: the value created when everyone is in the game minus value remaining when that player is plucked out

5. successful business strategy is about actively shaping the game you play, not just playing the game you find

6. value net: a schematic map designed to represent all the players in the game and the interdependence among them

including: customers and suppliers in vertical dimension, substitutors and complementors in horizontal dimension

7. CHANGING THE GAME

1) draw the value net

2) identify all elements of the game------PARTS: players, added value, rules, tactics, scope

-players: customers, suppliers, substitutors and complementors

-added value: what each player brings to the game

-rules: structure of the game

-tactics: moves used to shape the way players perceive the game and hence how they play

-scope: the boundaries of the game

8.pay me to play case

9. change the added value

-raise your own added value

-lower that of others

10. judo economics: by staying small, the newcomer turns the incumbent's larger size to its own benefit

reason: only when newcomer limits its capacity does the incumbent stand pat and the newcomer make money

11. traps of strategy

1) think you have to accept the game you find yourself in.

    in face, you can change the game

2) think that changing the game must come at the expense of others

3) believe that you have to find something to do that others can't

4) fail to see the whole game

5) fail to think methodically about changing the game