Differential Games In Marketing International In Quantitative Marketing 15

Differential games are a type of game theory that involves multiple players who make decisions over time. Each player has their own objective, and the outcome of the game depends on the actions of all the players. Differential games are often used to model situations in which there is competition between two or more parties, such as in marketing.

In international marketing, differential games can be used to model a variety of situations, such as:

Differential Games in Marketing (International Series in Quantitative Marketing Book 15)

by Steffen Jørgensen

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Language	:	English
File size	:	19889 KB
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* Competition between two or more companies for market share * Competition between two or more countries for foreign direct investment * Competition between two or more governments for trade concessions

The Basics of Differential Games

Differential games are played over time, and each player's actions affect the state of the game. The state of the game is typically represented by a vector of variables, such as the market share of each company or the level of foreign direct investment in each country.

Each player's objective is to maximize their own payoff, which is typically a function of the state of the game. For example, a company's objective might be to maximize its market share, while a country's objective might be to maximize its level of foreign direct investment.

The actions that each player can take are typically constrained by a set of rules. For example, a company may be constrained by its budget or its production capacity, while a country may be constrained by its trade agreements or its foreign policy.

The outcome of a differential game depends on the actions of all the players. If all the players cooperate, then they can achieve a Pareto optimal outcome, which is an outcome that is beneficial to all players. However, if the players do not cooperate, then they may end up in a Nash equilibrium, which is an outcome that is not beneficial to any of the players.

Applications of Differential Games in International Marketing

Differential games have been used to model a variety of situations in international marketing, including:

* Competition between two or more companies for market share * Competition between two or more countries for foreign direct investment * Competition between two or more governments for trade concessions

In each of these situations, the players have their own objectives and the outcome of the game depends on the actions of all the players. Differential games can be used to analyze these situations and to predict the likely outcome of the game.

Differential games are a powerful tool for modeling competition in international marketing. They can be used to analyze a variety of situations and to predict the likely outcome of the game. By understanding the principles of differential games, companies and governments can make better decisions about how to compete in the global market.

References

* [1] Başar, T., & Olsder, G. J. (1995). Dynamic non-cooperative game theory. SIAM. * [2] Dockner, E. J., Jørgensen, S., Long, N. V., & Sorger, G. (2000). Differential games in economics and management science. Cambridge University Press. * [3] Haurie, A., & Leitmann, G. (1986). Differential games. Springer. * [4] Isaacs, R. (1965). Differential games. Wiley.

Differential Games in Marketing (International Series in Quantitative Marketing Book 15)

by Steffen Jørgensen

4 out of 5

Language	:	English
File size	:	19889 KB
Print length	:	190 pages
Screen Reader	:	Supported

FREE