Game Theory Successful Negotiation in Purchasing: Requirements, Incentives and Award

Applied game theory in purchasing has become an important tool in many companies for systematically achieving success in negotiations. Applied game theory in procurement has become an essential tool in many companies for systematically achieving successful negotiations. Reverse auctions are a central building block of game-theoretically optimized negotiations. A foundational knowledge of auctions and game theory has thus become vital for procurement professionals.This book clearly describes many helpful methods and their application in practice. Procurement projects with a high volume, which are interesting for suppliers and whose performance can be well specified, are particularly suitable for using game theory in purchasing. The author also shows how cartels or restrained competition between suppliers can be identified using a purely data-based method.Every purchase involves a sale. The book is, therefore, not only aimed at buyers. Auctions in procurement and the underlying game-theoretic principles also play an equally significant role for salespeople.Content Concepts of game theory Examples of applied game theory Purchasing negotiations Data-based identification of cooperation between suppliers Application and limits of game-theoretical procurement optimization The Author Dr. Christoph Pfeiffer is a consultant and managing partner of Competitio Consulting, a management consultancy specializing in the systematic optimization of negotiations.The translation was done with the help of artificial intelligence. A subsequent human revision was done primarily in terms of content. Applied game theory in purchasing has become an important tool in many companies for systematically achieving success in negotiations. The central building block of game-theoretically optimized awards are purchasing auctions. A basic knowledge of auctions and game theory is therefore particularly important for purchasers.This book describes very clearly many helpful methods as well as their application in practice. Procurement situations which have a high volume, which are interesting for suppliers and whose performance can be well specified are particularly suitable for the use of game theory in purchasing. It also shows how cartels or restrained competition between suppliers can be identified using a purely data-based method.Every purchase involves a sale. The book is therefore not only aimed at buyers. Auctions in procurement and the underlying game-theoretical principles also play an equally significant role for sellers.Applied game theory in purchasing has become an important tool in many companies for systematically achieving success in negotiations. The central building block of game-theoretically optimized awards are purchasing auctions. A basic knowledge of auctions and game theory is therefore particularly important for purchasers.This book describes very clearly many helpful methods as well as their application in practice. Procurement situations which have a high volume, which are interesting for suppliers and whose performance can be well specified are particularly suitable for the use of game theory in purchasing. It also shows how cartels or restrained competition between suppliers can be identified using a purely data-based method. Every purchase involves a sale. The book is therefore not only aimed at buyers. Auctions in procurement and the underlying game-theoretic principles also play an equally significant role for sellers.