Game Theory

"When people having a shared goal don't cooperate, it results in a worse outcome for all of them." [Game theory]

Working with software vendors can feel like a real-life game theory exercise. Both client and vendor want a successful product, yet both often lose time, energy, and goodwill.

Your organization funds a new app. You spend weeks on requirements and designs. Then a disagreement arises over scope, timelines, or a technical trade-off.

The vendor says, "That’s not in the contract"

The client says, "But it is essential for users"

Both sides dig in. The vendor won’t do extra work without a change request. The client won’t issue one for something they assumed was included. The result? Delays, frustration, and a relationship focused on "who’s right" instead of "what’s right."

Game theory calls this a "non-cooperative equilibrium". In software, this means defensive emails, endless clarifications, and missed deadlines.

To break the cycle, build trust and transparency (yes, easier said than done). Treat the project as a shared mission, not a transaction. Shift from "us vs. them" to "we’re in this together."

Software is a real human collaboration challenge in which clients and vendors succeed or fail together