The Use of Game Theory in Building Sustainable Competitive Advantage

Proceedings of The 7th International Conference on Applied Research in Management, Business and Economics

Year: 2023



The Use of Game Theory in Building Sustainable Competitive Advantage

Dr. Dena Bateh




Creating sustainable competitive advantages is central to both the success and longevity of firms competing in today’s business environment. One powerful tool that businesses can learn from and utilize to potentially foster such advantages is game theory. To examine this further, we have thoroughly researched current articles and determined three areas in which competitive advantages can be derived from the implementation and understanding of game theory principles. These include improved decision making, supply chain management, and employee management. Our goal in this review is to analyze the works of experts on the subject to further our understanding of the topic. This research will provide a foundation for the subsequent justifications on how game theory can be utilized to create the competitive advantages we specified. Reviewing our findings has led the researcher to believe that firms of any variety looking to improve their decision making, supply chain management, and/or employee management could find great value, if not create fully realized competitive advantages, from taking game theory and its observations into consideration.

Keywords: game theory, supply chain management, competitive advantage