Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Hi, I am looking for someone to write an article on game theory in business applications Paper must be at least 1750 words. Please, no plagiarized work! Pricing decisions by a firm cannot be made in a vacuum. Firms decide prices in order to fulfill their objectives of revenue and profitability. Even a monopoly firm has to consider the pricing strategy from a point of view of its influence on others (non-participants) in the market. Firms in monopoly markets may at times do not charge the highest possible price as they fear that might bring in competition. In oligopoly market, the decisions to lower or increase the prices are often determined by taking into consideration the likely moves by the competitor. Thus a firm’s pricing decision is dependent on other decisions that are strategically determined. Thus game theory helps a firm in deciding the best price by considering the competitors’ likely changes in the prices. Firms in oligopoly, when indulging in price wars, end up with the same market share with no significant rise in sales but a sure reduction in revenues and profits.

For example - In 2002 AMD slashed its prices just after the price cut by arch-rival i.e. Intel. This reflected that the company was not ready to give up market share even if it were to come at the cost of profitability. Thus Intel’s price cut could not bring excess market share to any of them but did certainly reduce their revenues. (“AMD cuts prices to match Intel”)

When a firm considers an advertising decision, it aims at a specific level of sales or market share increase. The effectiveness, of a firm’s advertising and other promotional efforts is determined not just by the intensity of the promotional efforts by the firm, but it is also highly contingent on the decisions which are made by the competitors. If the competitors also run similar campaigns or more intense campaigns, the impact of the firm’s advertising and promotion will be nullified. In oligopoly firms often spend heavily on advertising with no significant gain in unit or revenue sales. The market&nbsp.shares also do not change. The firms ultimately restore the erstwhile equilibrium, however with a substantial hit in their profit figures. This is also an example of a game theory problem called a prisoner’s dilemma.&nbsp.

testimonials icon
If Bon Air super store’s annual demand for product A is 50 and the costPlease provide references and show all work. Step by Step w...
testimonials icon
Community-Level FactorsResearchers who investigate the causes of specific health problems look at a wide range of influence...
testimonials icon
HLT-205 Week 5 DQ 1 Read “Hospitals Facing Big Divide in Pro- and Anti-ACA States”Read “Hospitals Facing Big Divide i...
testimonials icon
Unit II Reflection Paper Being new to a place is challenging. The list below includes some provocative discussions related to the events in this un...
testimonials icon
  Understanding the definitions and terminologies associated with environmental toxicology is very important to a public health professional’s...
testimonials icon
 Click the link above to respond to the discussion. If you need help with completing discussions please click...
testimonials icon
Free Web-Based EHR ExperienceWell, my first experience was a bit frustrating since I was unable to log neither in nor create anaccount. However, afte...
testimonials icon
please help me to edit the paper in the attachment within 24 hours, this paper got low grade, please following the requirement and comment to d...
testimonials icon
Part B: MARKETING PROBLEM/OPPORTUNITYObjective:  1.As a result of the analysis(PART A), students should be able to clearly id...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65