Want to take on Gilead in hep C, Merck? Try niche marketing, game theory expert says

In game theory, the so-called Judo strategy involves using the size and strength of opponents against them. And that's exactly what Yale Professor Barry Nalebuff thinks Merck ($MRK) should employ when it rolls out its next-gen hepatitis C regimen, setting up a battle with Gilead ($GILD) and AbbVie ($ABBV). "If you're small, a large player doesn't want to come down and swat you because it hurts them in the process. And so, the trick is to find a way to commit to being small," Nalebuff said, as quoted by Bernstein analyst Geoffrey Porges. "Is there some niche market that Merck can approach and thereby not make it worthwhile for Gilead to come after them?" More