Game Theory - The Chicken Game

• A chicken game in a negotiation is when the supplier or the buyer threatens to inflict damage on the other in an attempt to get better
terms.

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 Game Theory - The Chicken Game

• Chicken is a risky strategy that should only be used in special cases.

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 Game Theory - The Chicken Game

• To predict the supplier's response it is important to understand how the opposition views you.

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 Game Theory - The Chicken Game

• The Chicken Game can work in Routine or Leverage quadrants of the Portfolio Analysis Matrix, where supply risk is low.

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 Game Theory - The Chicken Game

• The Chicken Game is not a suitable strategy in the Strategic or Bottleneck quadrants of the Portfolio Analysis Matrix where supply risk
is high.

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 Game Theory - The Chicken Game

• To make your game credible, you must demonstrate to the opposition that you are serious about the threat and only play chicken for a
strategic reason.

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 Game Theory - The Chicken Game

• Be aware that Chicken may cost you in the short term.

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 Game Theory - The Chicken Game

• If you play chicken in a negotiation, make sure you have a BATNA (Best Alternative to Negotiated Agreement).

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 Game Theory - The Chicken Game

• A Chicken Game in a negotiation is when the supplier or the buyer threatens to inflict damage on the other in an attempt to get better

terms.

• Chicken is a risky strategy that should only be used in special cases.

• To predict the supplier's response it is important to understand how the opposition views you.

• The Chicken Game can work in Routine or Leverage quadrants of the Portfolio Analysis Matrix, where supply risk is low.

• The Chicken Game is not a suitable strategy in the Strategic or Bottleneck quadrants of the Portfolio Analysis Matrix where supply risk

is high.

• To make your game credible, you must demonstrate to the opposition that you are serious about the threat and only play Chicken for a

strategic reason.

• Be aware that Chicken may cost you in the short term.

• If you play Chicken in a negotiation, make sure you have a BATNA (Best Alternative to Negotiated Agreement).