Open Innovation Modeling Using Game Theory

By • on June 3, 2011

In their article which appeared in the July 2011 issue of Academy of Information and Management Sciences Journal, authors Arben Asllani and Alireza Lari look at open innovation modeling using game theory.

According to Asllani and Lari, “Game theory is useful tool for making decisions in cases where two or more firms have conflicting interests. For example, previous research (Myatt and Wallace, 2002; Hippel and Krogh, 2003) uses game theory to investigate the rationale and conditions for participating in open source-software development project. Bringing a game theory perspective in the open innovation business models will allow firms to establish strategic alliances for collaboration with outside partners to exploit internal innovation, incorporate external innovation into internal developments, and motivate outsiders to supply an ongoing stream of external innovations.”

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