O'Reilly logo

Game Theory by Mark L. Burkey

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 10

Corporate Games III

Games Against the Competition

We now delve into the world of games between businesses. Of the myriad dimensions along which businesses can compete, we will discuss competition in choosing where to locate, pricing their products, by how many products they produce in the market, and by advertising.

10.1 Quantity Games: Everyone Can Win

One of the earliest, formal models that uses the logic of game theory was created by Antoine Augustin Cournot around 1838. Since Cournot was a mathematician, we will use a little bit of math in this section. He was observing two bottlers of spring water in a French town. He observed that the more spring water the two firms produced, the lower was the price that they could charge to ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required