A Quasi-Game Theory Approach to Pricing

Ambar G. Rao · Melvin F. Shakun

22 citations0/0 files storedManagement Science

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Consumer Market Behavior and Pricing Merger and Competition Analysis Supply Chain and Inventory Management

Abstract

A quasi-game theory approach to market-entry pricing is taken for a product class where price is the only indicator of quality. The model is based on certain hypotheses regarding individual customer behavior, which is then aggregated to find demand for a product given its price. Using game theoretic thinking and assumptions about brand behavior, optimal pricing policies are derived.

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1960Strategy and Market Structure 1966Price as an Indicator of Quality: Report on an Enquiry 1965Competitive Strategies for New Product Marketing Over the Life Cycle 1964A Note on the Relationship of Price and Imputed Quality 1971Quantitative Theories in Advertising.1967Mathematical Model for a Duopolistic Market

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1989Static game theory models and their applications in management science 2005To Segment or not to Segment? An Investigation of Segmentation Strategy Success under Varying Market Conditions 2011Game theory as a marketing tool: uses and limitations 1973Price and consumer behaviour—A review

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