In game theory, a strategy refers to a move in a well-defined game (i.e. an interactive situation with rules). In business law, however, “strategy” is a fuzzy term with no precise meaning … We attended a scholarly panel on “Law & Strategy” last Monday during the annual meeting of Academy of Legal Studies in Business (ALSB), a panel featuring the giants of this field, and frankly, we were not impressed. Unlike game theorists, business law professors have an imprecise and vague (and thus untestable) notion of legal strategy. They talk about “competitive advantage” and “proactive law” and other warm and fuzzy buzzwords when what they really mean is the use of law by business firms to exploit legal loopholes or extract economic rents. Moreover, we generally dislike such business law buzzwords and winced during most of the panel.
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