Game Theory and Business Intelligence

Posted by Winnie Melda on November 26th, 2018


Business operates towards the achievement of some defined objectives. Primarily, almost every organization will aim at growing financial and expanding on the business operations. The success of any business depends on some several factors however; the most critical aspect that defines the progress of the company is governance, leadership and management. The proper implementation of the mentioned aspects will guarantee the business growth and expansion. What rotates around management? It is the question that every individual will remain to ask, of course decision making process. Management skills are measured alongside the success of the decisions that the executive in the management made over the business. Therefore, I take to focus on the aspect of decision making as an element that both game theory and business intelligence takes to outline. The applications provide the way to the management on how to provide solutions to the underlying problems within the company.


Game theory is basically a summary of the study of the conflict and cooperation within an organization. The concepts of game theory outlines some aspects of formulating an idea, structuring, analyzing and taking to understand the strategic scenarios for the purposes of identifying a solution which comes a making a decision. Therefore, game theory is described as a process of studying mathematical models of identified conflict and cooperation between different business intelligent decision makers. It is the formal study of the decision making process in which the several or part of the players (decision makers) takes a choice that affects the interests of other decision makers. The group of management executive is in conflict and cooperation that at the end of the day a sound decision is outlined for the proper operation of the business (Mohaisen & Asikomurwa, 2015).

Business Intelligence

Business intelligence is another technique that has dramatically affected the operations of business. Business intelligence is a driven technology model that takes advantage of the organization data by analyzing that data and proving some actionable information that aids and has influence to the business management executives in making some more sound informed business decisions. The idea behind the technique is to draw out some patterns, trends and colorations from the big data of the organization and presents the information through different visualizations models that aid the management to outline the information that boost their decision making process.

Business intelligence is recognized to contain a category of different skills set, processes such as cluster analysis, applications, practices and technologies that aid in providing better and sound decisions. It outlines the definition of the information by analyzing the data to provide the necessary knowledge for predicting the business future. Business intelligence can get outlined as the process that incorporates the operations of the business and processes to generate the information after the analysis of the data warehouse. Therefore the process suggests the performance of in-depth analysis of the business data from the company application technologies and the database (Gangadharan & Swami, 2004).

Game theory takes the aspect of business intelligence of analyzing as part of its conceptualization process. Game theory previously was only applied in different fields of political science, psychology, computer science, economics, logic, biology and poker. However, currently the aspect is applied widely in behavioral relations and the logical decision making in computers, and human kind. Game theory is quite essential and useful in the helping the business operators and management to have a better understanding of  how they can get strategic decision making into action. The conflicts defined earlier describe the constraints that the management of organization gates to face while making decisions. These constraints may include the limited time, limited company resources, low funds and the unreliable incomplete company information. However, game theory takes the constraints into consideration to aid in provision of strategic decisions.

Business Intelligence as a tool

Game theory plays a critical part when it comes to decision making. This process should get some momentum of speeding up the overall decision making process by applying some scientific tools. The most probably tools that can aid the game theory in speeding the process of decision making are the Business Intelligence and Analytics tools. It goes by defining appropriate business data and tools to model the future of the business by applying the game theory. It therefore, goes that the business intelligence can be applied as by the game theory to aid in decision making process.

The Game theory branches

Game theory comes under two distinctive branch descriptions of either cooperative game theory of non-cooperative game theory. The cooperative game theory does investigate the underlying coalition of the game in respect to the power of the various players that defines the success of the coalition. The game theory aspects are mostly applied in the political science and international relations areas. Non-cooperative theory is on the other hand much concerned with the analysis of the strategic choice. The paradigm of the non-cooperative game theory works on the ground of timing the player’s choice that aid in determining the game outcome. The two branches of gets to differ in the assumptions they outline however with a central assumption of decision makers being rational (Turocy & Stengel, 2001).

Impact of Game Theory

Game theory is advantageous such that it gets deep to give some insights of the less known aspects. The hidden aspects within an organization operation are identified as they are the one that get to arise in the situations of conflicting interests. Game theory takes to describe the phenomenon of bargaining. Furthermore, game theory aids in developing a framework for analyzing decision making process. However, the assumptions that the players have the required knowledge about their claimed pay-offs and the pay-offs of the other players which is not practical. Also the game theory is not eligible in analyzing the competitive problems (Vinay, n.d).

Game theory strategies

Prisoners Dilemma

It is a strategy that describes the decision making of two distinctive persons. The persons acts on their own interest to give outcomes that are worse that if they could had cooperated to work as team. The strategy is essential when it comes to the understanding of what takes to govern the balance between the business competition and cooperation (Turner & Chao, 1999).

Cournot Competition

It is a model that is similar to prisoner dilemma with the originality from Augustin Cournot. It is regarded as an old model that has aided in providing some effective business decisions. It takes to base on describing the structure of the business that describes the output of companies depending on the decisions made independently on the input (Watson, 2013).


Game theory has been on existence since the early 1950s but the failure to improve on the model has got the introduction of some other techniques that promotes decision making. The business managers can take the advantage of employing the business intelligence tools by borrowing the game theory model insights in making decisions within the organization. On the integration of the two aspects of decision making influencers the outcomes can be more rewarding to the business that gets to have the organization maintain the status and grow accordingly. In all cases, the business intelligence has been the front bearer of getting companies identifies new business opportunities. Upon the consideration of game theory within the organization, the critical problems will get handled much well with the application of the business intelligence tools within the game theory model. It can be outlined that there is no game theory strategy that is perfect since the operations of the business gets to have the realization of the problems within the company that are handled differently. However, it can be depicted that game theory can be effectively applied and used as a tool for sound decision making in different fields of politics, psychology, economical or within a business setting. Furthermore, the models should get treated as a theory that sheds some light on the company operations behavior and why to go by some strategies meaning it only facilitates critical thinking.


Gangadharan, G. R. & Swami, S.N. (2004). “Business intelligence systems: design and implementation strategies,” Inf. Technol. Interfaces, 2004. 26th Int. Conf., pp. 139 – 144 Vol.1.

Mohaisen, M & Asikomurwa, V. (2015).International Journal of Advanced Computational Engineering and Networking. Game Theory And Business Intelligence In Strategic Business Decisions - A Review. ISSN: 2320- 2106, Volume-3, Issue

Turner, P.E. & Chao, L. (1999). Prisoner’s dilemma in an RNA virus. Nature398: 441443.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in customized term papers if you need a similar paper you can place your order for research paper custom.

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Winnie Melda

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Winnie Melda
Joined: December 7th, 2017
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