By analysing the others' potential responses, game theory adds another dimension to a firm's sleuthing.

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One day, a phone call with a potential distributor put this theory into practice.

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Embryonic stem cells are seen by many researchers as having great potential because they can in theory be coaxed to create any kind of cell type in the body.

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But when the potential recovery on a dubious theory is substantial (either because of pressures to settle or because there is a very small chance of a very large recovery), most lawyers will hesitate before fronting litigation costs.

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The theory that exposure to potential allergens could offer protection against allergic conditions is gaining weight.

BBC: Allergy risk of middle-class children

Potential answers are provided by a theory developed in the early 1980s known as "inflation".

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One potential obstacle to Sanderson's theory is that new teams would be considered redheaded stepchildren by fans in big metro areas, especially during trying, early years.

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This makes sense because the stock, unlike the bond, has much more price upside, and in theory you give up steady income for potential price appreciation.

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Catering to the health crowd, in theory at least, adds a whole new category of potential sales, piled on top of existing constituents--African-American and Hispanic consumers in cities, bikers in the wilds, as well as its long-targeted "Pepsi-pretty" suburbanites.

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The logic behind long-only equity, that risky assets deserve higher growth potential and straight market exposure will provide acceptable returns, works well in the ivory tower of modern portfolio theory, but often takes decades to deliver results in practice.

FORBES: Rethinking Long-Only Equity