Game Theory in Negotiations

Over seven weeks, SIG University’s Game Theory in Negotiations (GTIN) program equips procurement professionals with the tools and strategies to apply game theory in their supplier negotiations enabling them to maximize their savings and achieve their ideal commercial outcomes.

What is Game Theory in Procurement?

Game theory is a powerful branch of economics that focuses on understanding and shaping strategic interactions to optimize outcomes. In procurement, it enables buyers to design competitive negotiations that compel suppliers to deliver their best solutions and prices, enabling procurement to maximize savings and achieve their negotiation objectives.

When designed correctly, competitive negotiations with game theory will outperform traditional bilateral negotiations. However, since no two negotiations are alike, procurement teams face the critical challenge of creating the “game” best suited to their specific objectives and constraints in each negotiation. This training equips participants to make informed decisions about tradeoffs in negotiation design, empowering them to achieve the best outcomes in any scenario.

What Will I Learn in Game Theory in Negotiations?

This 7-week course blends theoretical knowledge with practical application to cover:

Core Principles of Game Theory: Understand the fundamentals of game theory and how they are relevant and can be applied to procurement negotiations.
Auction Design and Execution: Master the different procurement auction formats and design decisions, understand the tradeoffs of each decision, and determine under what circumstances each format is the strongest.
Total Cost of Ownership (TCO): Quantify non-cost factors between suppliers to create an apple-to-apple comparison and enable competition in more complex categories.
Stakeholder Engagement: Learn to secure buy-in for new competitive negotiation methods and overcome subjective stakeholder bias.
Supplier Communication Strategies: Understand how to explain the new negotiation process to suppliers effectively and how to handle concerns, questions, or resistance
Case Studies: Understand how to put theory into practice through case studies from real negotiations in different procurement categories

Who Should Take This Training?

This program is ideal for:

Professionals directly involved in procurement negotiations with suppliers (e.g., category managers, procurement engineers, supplier account managers)

Cross-functional colleagues who have supplier contact and contribute to negotiations

Whether you’re a seasoned professional or new to procurement, this training should provide you with additional expertise to drive better negotiation outcomes.

How is the Training Structured?

The GTIN seven-week learning journey takes approximately 1-2 hours per week to complete. Each week is structured as a blend of theory and practice and includes:

Short, focused module assignments.

Interactive case studies to apply concepts in realistic scenarios.

Quizzes to reinforce learning and track progress.

Faculty-led, asynchronous discussion forums with peers across industries.

What Can I Expect After Completing the Training?

In addition to the knowledge, skills, and tools gained, those who have completed the GTIN program have loved the learning experience provided and can immediately apply what they learned. All graduates of the GTIN program are issued a digital badge to include on their CVs and LinkedIn profiles.

Graduates of the GTIN program are invited to join the SIG University Alumni and Faculty private LinkedIn group to stay connected with peers and faculty.

Additionally, SIG University graduates receive 10% off additional certifications!