The Strategy of Interdependent Decisions

by James Boulden, Elwood Buffa



The article is related to the strategy of interdependent decisions. It presents a game which help readers to test and compare their performances with that of fifty-two other executives. The executive in the U.S. functions in an environment of incredible complexity frequently the manager finds himself ill a situation with a multitude of variables and action alternatives. Certainly no mathematical model can duplicate this decision matrix. Nevertheless, it is often useful for the executive to abstract from this complex reality in order to identify the critical variables and determine the nature of their interrelationships. The decision-making situation presented in this article was necessarily simplified to make it suitable for quick analysis. However, this does not detract from the importance of the concepts used in the solution. The executive must weight the value of decision alternatives according to their probability of occurrence to determine the relative desirability.

California Management Review

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Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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