Applied game theory for the hospital manager. Three case studies

This article reviews the more complex aspects of game theory than those presented in a recent HCM article. Following a basic overview of terminology and simplified examples, case studies are presented to show the hospital manager how game theory is a useful modeling strategy for predicting human interactions and the potential outcomes of certain decisions, especially economic ones. Understanding game theory provides the manager with an understanding of basic and advanced strategies that can be utilized to competitive advantage in the health care market (thus giving it applicability at the manager's clinical level of decision making), as well as grasping the "larger picture" of health care decision making at high levels, such as in professional societies and government.