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Brands Represent Risk Mitigation for Consumers

Strategy Driven

Some economists explain brands from a game-theory perspective. They say that brands are a mechanism for companies to engage customers in repeated games. This guest post is adapted from SUPER SIGNS: Taking Your Brand To The Ultimate Level by Sam Hua and Nan Hua, founding partners of Shanghai H&H Marketing Consulting Company.

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Nate Silver on Finding a Mentor, Teaching Yourself Statistics, and Not Settling in Your Career

Harvard Business Review

But my experience is all working with baseball data, or learning game theory because you want to be better at poker, right? The manager doesn’t want to seem like he’s not sure what he’s doing. And the consultant or the analyst wants to provide information to make the manager feel more confident.

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Strategy Lessons From Jean Tirole

Harvard Business Review

He then usually brings in the tools of game theory, in which his protagonists have to contend with other rational actors and the moves they might make. In the early 1980s, the game theory approach to studying industries promised to be the next big wave in strategy. The Theory of Industrial Organization was just the first.