Avoid A Lose-Lose Pricing Position
Playing the pricing game can be a challenging task. According to game theory, originally developed in the 1940s by two Nobel Prize winning academics, success depends on knowing how to play the right game. One key to success in any game is to look forward and then reason backward to figure out the best action to take today, considering what your competition might do tomorrow. This perspective requires you, as a strategic thinker, to get in the head of your competitors and consider how they’re likely to play the game. Let’s look at a simple hotel-pricing game.