Decision trees can be helpful in the analysis of the key drivers of profitability in the design and risk reduction strategies. In the analysis of the competitive situation, each player can be the view represented by a separate decision tree, the creation of a “decision forest.” In some situations it is useful to combine two player decision trees in a single payoff matrix. This note presents these concepts step by step.

Decision trees can be helpful in the analysis of the key drivers of profitability in the design and risk reduction strategies. In the analysis of the competitive situation, each player can be the view represented by a separate decision tree, the creation of a “decision forest.” In some situations it is useful to combine two player decision trees in a single payoff matrix. This note presents these concepts step by step.
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from
Matthias Hild
Source: University of Virginia Darden School Foundation
13 pages.
Publication Date: Jan 16,, 2006. Prod #: UV1471-PDF-ENG
Structuring a Competitive Analysis: Decision Trees, forests and decision payoff matrices HBR case solution

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