Hold or Fold: The War of Attrition Harvard Case Solution & Analysis

Costly "war of attrition" are common. Examples include: 1) the struggle for the business market maker in British government bonds, which occurred after the 1986 deregulation of the financial markets in London, and 2) a battle that took place in late 1980 between the British Satellite Broadcasting and Cable TV business over the UK satellite broadcasting. The case explores what can happen when two companies are engaged in a war of attrition. The analysis shows that for any time whatsoever, you can rationalize a strategy of struggle for it this time. This provides a reason, a war of attrition often leads to lengthy battles and large cumulative losses for the players involved. There is an irreducible "fog of war" that makes war of attrition is a very dangerous game. "Hide
by Adam Brandenburger Source: Harvard Business School 2 pages. Publication Date: January 3, 1994. Prod. #: 794092-PDF-ENG

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