Co-Opetition - Adam M. Brandenburger [134]
13. Cynics might say that’s why information technology is taking so long to come to the college campus.
14. American is also a supplier of MIS to other airlines. It sells yield management and loyalty management skills to other airlines and to other businesses, such as hotels and car rental agencies.
15. Gary Hamel and C. K. Prahalad, Competing for the Future (Boston: Harvard Business School Publishing, 1994).
16. The sales data come from Harold Vogel, Entertainment Industry Economics (Cambridge: Cambridge University Press, 1995). They are wholesale numbers for domestic and foreign sales.
17. Mary Westheimer, Publishers Weekly, August 28, 1995, p. 35.
18. Here, Mary Westheimer was referring back to the expansive view of UCLA marketing professor Ed Gottlieb: “First you have to create an appetite for books; then people will buy them.”
19. Mary Westheimer, Publishers Weekly, August 28, 1995, p. 35.
20. Wall Street Journal October 31, 1995, p. Al.
21. Harvard Business School professor Michael Porter discusses clustering effects in The Competitive Advantage of Nations (New York: Free Press, 1990).
22. Stephen Covey makes this point. See his book The Seven Habits of Highly Effective People (New York: Simon & Schuster, 1990), pp. 209–10.
3. Game Theory
1. There are many books on game theory and its applications. Perhaps we’re a little biased, but we think a good starting point is Avinash Dixit and Barry Nalebuff, Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life (New York: W. W. Norton, 1992). A classic that applies game theory to competitive situations is Thomas Schelling, The Strategy of Conflict (Cambridge: Harvard University Press, 1960). Of course, game theory also illuminates cooperative behavior; see Robert Axelrod, The Evolution of Cooperation (New York: Basic Books, 1984). The following books apply game theory to evolutionary biology, law, politics, even the bible: Richard Dawkins, The Selfish Gene (New York: Oxford University Press, 1976); Douglas Baird, Robert Gertner, and Randal Picker, Game Theory and the Law (Cambridge: Harvard University Press, 1994); William Riker, The Art of Political Manipulation (New Haven: Yale University Press, 1986); Steven Brams, Biblical Games: A Strategic Analysis of Stories in the Old Testament (Cambridge: MIT Press, 1980). For anyone interested in delving further into the mathematical theory, we recommend Martin Osborne and Ariel Rubinstein, A Course in Game Theory (Cambridge: MIT Press, 1994) and Roger Myerson, Game Theory (Cambridge: Harvard University Press, 1991).
2. See analysis in BusinessWeek, November 20, 1995, p. 54, and New York Times, November 7, 1995, p. B9.
3. See Adam Brandenburger and Harborne Stuart, “Value-Based Business Strategy,” Journal of Economics & Management Strategy, Spring 1996.
4. This was predictable. Why didn’t the studio write a long-term contract, locking in Macaulay for a multimovie deal? In fact, it did, and Macaulay renegotiated the deal. Historically, movie studios had locked in actors through long-term—even lifetime—contracts. But the contracts were often unenforceable. Marilyn Monroe, for example, was signed to 20th Century-Fox indefinitely for $50,000 a picture. In 1954 she went on strike. Fox suspended Monroe for contract violation, but she held out, the public sided with her, and Fox came up with a new, more generous arrangement. See Donald Spoto, Marilyn Monroe: The Biography (New York: HarperCollins, 1993).
5. “The Domino Effect: Of Foxes, Printers, and Prices,” Channelmarker Letter, vol. 2, no. 6 (December 1990), pp. 1–7.
6. James Charlton, ed., The Executive’s Quotation Book (New York: St. Martin’s Press, 1983).
7. This is not a new word. According to Webster’s Third New International Dictionary, “allocentric” means “having one’s interest and attention centered on other persons.”
8. Roger Fisher and William Ury, Getting to Yes (New York: Penguin, 1981), p. 23.
4. Players