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SYSTEM DYNAMICS MODELING OF OLIGOPOLY MARKET BASED ON GAME THEORY |
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| รหัสดีโอไอ | |
| Creator | Ali Mohammadi, Ehsan Javanmardi |
| Title | SYSTEM DYNAMICS MODELING OF OLIGOPOLY MARKET BASED ON GAME THEORY |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2562 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 10 |
| Journal No. | 5 |
| Page no. | 673-687 |
| Keyword | Game theories, System dynamics, Oligopoly markets, Dynamical system game theories. |
| URL Website | http://tuengr.com/Vol10_5.html |
| Website title | ITJEMAST V10(5) 2019 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | This study proposes a theoretical framework that can describe the dynamic dimensions of the game environment and the factors affecting it, and can model the impacts of decisions on the environment and vice versa, through an application of system dynamics. At first, a conceptual model was formulated for oligopoly markets, based on the dynamical system game theory. Following that, corporates' decision-making mechanisms were formulated in an oligopoly market, and the observations showed that the Structure of the demand function served as the central element in determining the Nash equilibrium and players' optimal decisions. Then, three variables, namely cost, quality, and advertisement were considered as decision variables of the problem, and ultimately the final causal game model was designed. The sample under study was the Iranian white cement export market. Results of simulation revealed that the important parameters of the model, including demand volume, profit rate, and cost, tended toward equilibrium after a fluctuating transition period. Solving the model through common game theory methods would not make it possible to investigate the behaviors of the system in the long run, nor to observe the transition period. The key innovation of this research is to propose a conceptual model of game in dynamical systems, by taking into account multiple decision variables. |
