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2014.
Modeling of Triopoly Strategic Interaction Using Three-Person Noncooperative Games
Game theory can be useful for analysis of strategic interaction that we have at different types of market. A specific market structure is triopoly where we have three suppliers of the same product and they need to define their pricing strategy based on retaining, decreasing or increasing prices. Strategic interaction in this market structure can be analyzed by three-person noncooperative game theory. The paper develops a model for this type of strategic interaction. The model is applied on the specific market of Internet providers, showing very interesting conclusions that can be useful for all three market players in pricing decision making.