Real businesses don't of course, need to know all of what the biologists and economists are discovering about complex systems. Suffice it to say, recent genetic research suggests that evolution may favor genes that program an organism for cooperative behavior. Once you draw an analogy between genetic behavior and organizational and economic behavior, you inevitably come to the conclusion that cooperative behavior is very often conducive to the survival of individuals as well as to that of societies. It's a big yawn to say that we live in a period of tremendous change and only those who can adapt will survive. And applying game theory to decision-making is old hat now as well.
Business people do it, governments do it, armies do it.
This doesn't mean being a wimp. If a competitor sticks his thumb in your eye, you may ignore him the first time, being more forgiving than tit for tat. But if he does it again, you knee him in the groin, reminding him that you can play rough, too. However, you don't spend all your time trying to figure out how to drive him into Chapter 11. You retaliate only in such a way as to convince him that you'll play rough if he continues to do so.