Game theory in project management

In order to advance, management and more specifically strategic management, needs to integrate other scientific disciplines in its own concept. Game theory is an aspect of mathematics designed to understand, model and predict the behaviour of actors considering a determined environment. Basically, the theory identifies the players, their assets and their possible strategies. It simulates, through a precise defined game, the different interaction between entities such as companies, states, lobbies, individuals etc. The concept is already widely used in many fields such as psychology, economics, politics and others. Despite its great efficiency, some prerequisites of Game theory may seem contradictory with a management point of view. First, the extreme mathematical complexity needed to treat some problems is an important limitation, secondly the presumed rationality of the players can be defected in the real world.

Regarding some simple games, such as the prisoner dilemma, this article focuses on the possible outcomes of Game theory leading to development of models and decision making process in management. Going through different scenarios and examples while considering the ethical point of view, this article outlines the use of Game theory as a simple tool. It opens a new and more rational perspective for the manager which can be used in addition to usual managerial skills.