Geodesic
Quality Choice under Competition: Game-theoretical Approach
Contributions to game theory and management, Tome 3 (2010), pp. 118-131.

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In the paper a game-theoretical model of quality choice under competition is suggested. The game-theoretical model is presented as a two-stage game where production companies compete on an industrial market and consumer's taste to quality in non-uniformly distributed. The strong Nash equilibrium in the investigated game was obtained in explicit form which allowed us to evaluate prices, companies market shares and revenues in the equilibrium. A case study for Internet-trading systems was used to approve the suggested quality choice mechanism.
Keywords: quality evaluation, quality measurement, consumer's taste to quality, quality choice, two-stage game, Nash equilibrium, Stakelberg equilibrium, Pareto-optimal solution, optimal quality differentiation, index of consumers satisfaction. 
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     author = {Margarita A. Gladkova and Nikolay A. Zenkevich},
     title = {Quality {Choice} under {Competition:} {Game-theoretical} {Approach}},
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     url = {http://geodesic.mathdoc.fr/item/CGTM_2010_3_a10/}
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Margarita A. Gladkova; Nikolay A. Zenkevich. Quality Choice under Competition: Game-theoretical Approach. Contributions to game theory and management, Tome 3 (2010), pp. 118-131. http://geodesic.mathdoc.fr/item/CGTM_2010_3_a10/

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