What Game Theory Teaches Us About Startups and Wars In both wars and startups, success isn’t always about strength — it’s about strategy. Startups play a non-zero-sum game: You don’t have to destroy the competition to win; you can create new markets or collaborate for mutual gain. Wars often mimic zero-sum games: One side’s gain is the other’s loss — but game theory shows that even in war, cooperation or deterrence (like in the Cold War) can lead to equilibrium. Nash Equilibrium in startups? When every player (startup or incumbent) sticks to a strategy because changing would worsen their outcome — think pricing wars or feature cloning. Prisoner’s Dilemma? Two startups in a market could burn each other with undercutting, or grow together by maintaining value — but trust is fragile. Lesson: Think like a strategist, not a soldier. In a world of infinite games, the best players change the rules.
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