When to compete and when to cooperate

Abstract

After reading this chapter you will be able to:

• take account of the actions and responses of other strategic players in making a good strategy

• understand what is meant by the commons, or public goods, and free riding

• use game theory to understand the structure of a number of recurrent strategic situations

• describe the different ways in which cooperation can be initiated

• note the proliferation of strategic alliances as an expression of the increasing importance of cooperation

Strategic rivalry, unlike competitive rivalry, is the search for cooperation. (Davis and Devinney, 1997:286)