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When no pattern VATS key is available for you to duplicate, you can make a VATS key by first determining the proper bitting in the same way that you would determine the bitting for non-VATS late-model GM vehicles. Then determine the VATS key blank to which to transfer the cuts. The most expensive way to determine the correct blank is to cut and try a different VATS key blank until you find one that starts the vehicle. The high costs of VATS blanks make this method impractical. A less costly method involves using an ohmmeter or multimeter, an extra VATS ignition cylinder, and 15 different VATS blanks. Disconnect the wire harness connecting the control module to the cylinder, and connect that wire to the extra VATS cylinder. Insert one of the VATS key blanks into the extra cylinder, and attempt to start the vehicle by using the correctly cut mechanical key to turn the vehicle s ignition cylinder to the start position. If the vehicle shuts down, you ll need to wait four minutes and then repeat the procedure with another VATS key blank in the extra ignition cylinder until the vehicle starts. After the vehicle starts, transfer the cuts from the correctly cut mechanical key to the VATS key blank that allowed you to start the vehicle. Then disconnect the wire harness from your extra ignition cylinder and reconnect it to the vehicle s ignition cylinder.

Yet as we look more closely, we find that game theory takes us only as far as Porter s competitive strategy. It s a method of analysis, not of decision making. For example, Co-opetition presents the case of rebate programs, like GM s partnership with Household Bank and MasterCard, which lets customers build up a rebate through ordinary credit card purchases. The GM Card was the most successful rollout ever in the credit card business. Other car companies copied it right away, with positive and negative effects for GM. So Coopetition gives this lesson for rebates:

A VATS decoder can be very helpful for servicing vehicles with VATS. Several companies manufacture this device. A typical model can be used to perform four functions: identify the correct VATS key blank from the customer s original, decode the correct VATS blank from the vehicle, diagnose steering column connection problems, and diagnose VATS computer problems. The resistor value of a VATS key can be determined simply by inserting the key into a slot in the decoder. This feature can be useful for quickly finding the right VATS key blank to use to duplicate a VATS key. The decoder also can help to determine which VATS blank to use when no VATS key is available. First, you need to cut a correct mechanical key that will turn the vehicle s ignition cylinder to the start position. Then connect the decoder s two tester connectors to the mating VATS connectors at the base of the steering column under the dash. After turning the decoder s key code switch to 1, try to start the engine with your properly cut mechanical key. If the engine doesn t start, press the four-minute timer on the decoder. After four minutes, the timer light will go out. That lets you know that the vehicle should be ready to try another key code number. Then turn the decoder s key code switch to the next number and try the mechanical key again. Follow this procedure until the vehicle starts. When the vehicle starts, transfer the cuts from your mechanically correct key to the VATS blank that corresponds to the number of the key code shown on the VATS decoder.

PROs: 1. Allows you to charge your own customers low prices without threatening your rival s customer base. 2. Encourages customers even price shoppers to become loyal. 3. Creates synergies with credit card partners. CONs: 1. Rewarding loyalty in cash rather than kind, doesn t raise your added value. 2. Is ineffective on small-ticket items.

These are good lessons, and the GM Card story gives you plenty of details to copy or avoid in your own case. Yet if you re considering a rebate program, game theory cannot tell you whether or how to do it. It can only show you the various options and the trade-offs involved in each one. The final decision is up to you. So how do you decide By coup d oeil. Like Porter s work, Co-opetition gives many detailed cases to feed your expert intuition. For example, we watch the complex bidding for LIN Broadcasting, in which surprising players win and lose. And we find the pros and cons of many other cooperative tactics in addition to rebates, such as most-favored-customer and meet-the-competition clauses and take-or-pay contracts. We even find that win-win strategies deserve direct imitation, whereas competitive strategy rules them out because it deals only with win-lose situations. A win-win example is frequentflyer programs. American Airlines started the first such program,