MODELING SEQUENTIAL RESPONSES IN INTERACTIVE DECISIONS

Sequential Response Models use techniques based on ordinal noncooperat ive game theory to analyze decisions in which participants may sequent ially respond to the actions of their opponents. Sequential Response M odels, which include Departure Games, allow a decision maker to use fo resight in determining the best move. This article presents the first model to adequately describe general sequential response decision situ ations. The Double Departure Game model allows a broader application o f foresight than was previously possible. This model applies these pri nciples in a 2 x 2 game context, providing a basis for extension of th ese ideas to more general games. The model is used to demonstrate the possibility of cooperation without communication, and to examine this phenomenon in several business contexts.