Competitive strategy relies largely on game theory. Market entry games, where an incumbent has the option to retaliate or accommodate a new entrant is a classic

Competitive strategy relies largely on game theory. Market entry games, where an incumbent has the option to retaliate or accommodate a new entrant is a classic example. The key aspect in this case (and many others) is one people usually have a hard time grasping: take in account that your opponent is as rational and intelligent as you are, and can predict your actions just as well as you can predict theirs. In other words, it's like playing chess against yourself.