In this course we continue, deepen and extend the analysis of strategy. The success of a firm depends on the decisions it makes, and these decisions have to take the behaviour of competitors into account who themselves try to make optimal decisions. Thus the firm faces a problem of strategic interaction, and game theory takes this interaction consistently into account. This course aims at a strategic understanding of these situations and the decisions firms face. We will study general principles of strategic thinking, the application of these principles to specific problems and general conclusions we can draw in these situations.