Fixed Pies and Third Place
In this week's New Yorker, James Surowiecki reminds us that "business is not a sporting event [and] victory for one company doesn't mean defeat for everyone else."

Surowiecki's article, In Praise of Third Place, concerns the fight for market dominance in the video-game industry.
The players? Microsoft's Xbox, Sony's Play-Station 3 and Nintendo's Wii.
The takeaway? Good news for those of us who continually hector our fellows about collaborative problem-solving and the real social, political and environmental dangers of fixed pie thinking.
By not competiting for the number one video-game slot, Nintendo is "beating" its Goliath competitors.
[Nintendo] has five billion dollars in the bank from years of solid profits, and this past year . . . saw its stock price rise by sixty-five percent. Sony's game division, by contrast, barely eked out a profit and Microsoft's reportedly lost money.
How could this happen to the Big Boys? Surowiecki explains:
Markets today are so big -- the global video-game market is now close to thirty billion dollars -- that companies can profit even when they're not on top, as long as they aren't desperately trying to get there.
Want to perform like Nintendo?
The key is to play to your strengths while recognizing your limitations. Nintendo knew that it could not compete with Microssoft and Sony in the quest to build the ultimate home-entertainment device. So it decided, with the Wii, to play a different game entirely. Some pundits are now speculating, ironically, that the simplicity of the Wii may make it a huge hit.
Here's a question for the evolutionary biologists -- of Life's Top Ten Greatest Inventions -- multicellularity, the eye, the brain, language, sex, photosynthesis, death, parisitism, superorganisms and symbiosis, how many arose from competition and how many from collaboration (or is the question itself too simplistic?)

. . . understanding cognitive biases can help the parties settle .jpg)
Negotiators have much to learn from game theorists. In the book, 



Nature gives you the face you have at 20; it is up to you to merit the face you have at 50. -- Coco Chanel
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