How do you test and validate your game theory assumptions and predictions?
Game theory is a powerful tool for pricing analysis, especially when you face strategic interactions with your competitors, customers, or suppliers. However, applying game theory to real-world situations requires making some assumptions and predictions about the behavior, preferences, and beliefs of the players involved. How can you test and validate these assumptions and predictions to ensure that your game theory models are accurate and reliable? Here are some methods and best practices to help you do that.