Rounding up the latest in sales research and innovation.
July 28, 2021
This month’s Maestro Mastery tour of game theory and its business applications is coming to a close. As usual, we want to leave you with further directions to explore, so we’ve collected the top articles, videos, and podcasts on the topic. Enjoy!
When you try to dig deep on game theory, whether you are exploring from a psychology or a behavioral economics perspective, it all comes down to math. Trefor Bazett, a YouTube math personality and professor at the University of Victoria in Canada, just kicked off a video series on game theory this month. It’s a cool opportunity to learn more about how game theory works.
Alternatively, dig into the longstanding series offered by William Spaniel called Game Theory 101. You may have heard of the trolley problem, but have you heard of the demon’s trolley problem? It’s yet another example of how much you can learn and predict by putting yourself into the mindset of another person. Plus, it has engaging illustrations—by which I mean lots of stick figures!
Until now, game theory has generally had only a minimal impact on the types of strategic thinking taught in business schools. Ram Shivakumar of the University of Chicago writes that management needs to learn about game theory. He lays out the differences in terminology and approach between what managers are used to and how game theorists approach the same problems, then argues for the complementarity of the approaches.
Some organizations have already managed to apply game theory successfully. Barry Nalebuff, whose classic article on the subject showed up in our blog two weeks ago, co-founded Honest Tea in part to prove the value of game theory for strategic and managerial thinking.
Taylor Wells, an Australian consultancy, posted an interesting discussion of how game theory is applied in pricing decisions. They conclude that professionals who make pricing decisions should understand and employ game theory. The result?
“A model that generates a range of practical answers (rather than just one definitive answer) to several well-planned (or well-thought-through) commercial scenarios. … This requires agile learning, scientific investigation, and a deep commercial understanding of the financial impact of pricing on profitability.”
Sounds like valuable insight, doesn’t it?
There are more models to consider in game theory than just the prisoner’s dilemma, and this article gives a quick rundown of three more “games.” Check it out to explore various models for competition and collaboration. Or if you want a refresher on the prisoner’s dilemma with cute felt gingerbread men and a wizard, TED-Ed is there for you on YouTube.
TWS Partners, an organization focused on applied game theory, has a wide-ranging podcast called Game Changer that dives into different applications of game theory twice a month. Check out the episode with Duke University’s David McAdams where he discusses how game theory, and math generally, can be dangerous!
In its origins, game theory is related to actual games, such as roulette, poker, or chess. Trying to learn about game theory will often lead to many of our trademarked rabbit holes; there’s a lot out there about video games, board games, fantasy sports, and more! Probably the most interesting sidetrack from this month’s sales news gathering has to do with gamification.
Think about it. Gamification means turning something into a game, with stories, goals, and rewards. It means introducing winning and losing and dopamine hits into situations that might not ordinarily involve them.
Now, sales professionals are already motivated to succeed by the fact that when they sell, they get paid more. But gamification can help motivate them to practice proper CRM hygiene or undertake other frustrating aspects of their job that may not be obviously connected to the goal of making more money (though they help the company make more money overall). HubSpot breaks down the psychology of gamification in sales.
We’ve been hearing from many clients about their challenges hiring salespeople in today’s current tight job market. And when you talk, we listen. So, for Maestro Mastery in the months of August and September 2021, we will dig deep into the topics of hiring and successfully onboarding sales professionals. Come along for the journey—we would love to hear your successful strategies as well!
To schedule our popular workshop on Game Theory in Sales, or get assistance on recruiting and hiring, contact Mastery@maestrogroup.co.
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