Role of strategic interaction What you do affects the profits of your rivals What your rival does affects your profits Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Role of Strategic Interaction • What you do affects the profits of your rivals • What your rival does affects your profits