Game Theory - "it's a bust"
A generation of MBA students have been taught Game Theory, which on its own should be enough to discredit it, but unfortunately for its enthusiasts nobody in business uses game theory. Kihn and his 'Fast Company crew' checked it out:
The result: a lot of head scratching from the 'experts,' and a big zero in the box showing the number of times Game Theory has been used by businesses. [Hat tip Mises Blog]
Adopting our usual rigorous methodology, we set the following parameters. To count, an example must:
- be an actual business situation where somebody used the insights of game theory;
- have occurred within the past five years; and
- involve real, live, actual companies -- not governments, nonprofit organizations, or Russell Crowe.
Linked post: You Got Game Theory!