The Science of Strategic Thinking
Improve Negotiation Outcomes with 2 Central Principles from Game Theory
Game theory, as explained by Kevin Zollman, emphasizes the importance of patience and the ability to make take-it-or-leave-it offers in negotiations, with the more patient negotiator often gaining the upper hand.
Shift Your Mindset to “Win-Win”
Game theorist Kevin Zollman emphasizes that many competitive situations can yield mutual benefits through trust and collaboration, urging negotiators to seek outcomes that favor both parties while ensuring enforceability to prevent broken promises.
Strategize for Zero-Sum Situations
In zero-sum negotiations, assess your opponent's intelligence; if they are smarter, consider using a mixed strategy to act randomly or a minimax strategy to minimize potential losses, while being cautious not to misapply these tactics outside zero-sum contexts.
Make Better Decisions by Predicting What Other People Will Do
Game theory analyzes projects, organizations, or negotiations as games where players pursue their interests under constraints, emphasizing the importance of understanding their motives, available options, and likely actions to effectively predict and respond to their moves.
Maintain Transient Diversity for Optimal Group Problem Solving
To effectively solve complex problems, assemble groups with "transient diversity," where members possess differing perspectives yet remain flexible and open, enabling productive debate and collaboration to achieve superior solutions.
Game theory is the science of strategic thinking. Born in the field of economics, game theory is applicable to everything from biology and international diplomacy to relationships with friends and parents. And in the context of business, argues game theorist Kevin Zollman, it applies to every aspect of decision-making at any point in a career.
Learning Objectives
- Build effective cooperation through "transient diversity."
- Improve your negotiating position.
- Create the conditions for win-win mindsets.
- Strategize for zero-sum situations.
- Empathize with others to make better predictions.