scholarly journals Spatial Advertisement Competition: Based on Game Theory

2014 ◽  
Vol 2014 ◽  
pp. 1-5 ◽  
Author(s):  
Zheng-xun Tan
Keyword(s):  
Game Theory ◽  
Market Share ◽  
Spatial Competition ◽  
Free Rider ◽  
Transportation Costs ◽  
Hotelling Model ◽  
Sales Revenue ◽  
Brand Values ◽  
Spatial Duopoly

Since advertisement is an important strategy of firms to improve market share, this paper highlights duopoly advertisement under the Hotelling model. A model of advertisement under spatial duopoly is established, and corresponding effects of brand values and transportation costs are all captured. This study presents the proportion of sales revenue spending on advertisement. The condition for free-rider in advertisement investment is discussed. Under firms with the identical brand values, if firms' advertisement points to corresponding consumers, price and advertisement investment are all reduced. Therefore, advertisement is discussed under spatial competition in this work.

scholarly journals The Impact of Transportation Costs on Spatial Competition of Grain Buyers: An Iowa Case Study

2010 ◽  
Author(s):  
Miguel A. Carriquiry ◽  
Bruce A. Babcock
Keyword(s):  
Mississippi River ◽  
Spatial Competition ◽  
Transportation Cost ◽  
Transportation Costs ◽  
Lower Price ◽  
Classic Model ◽  
The North ◽  
Scott County ◽  
The Impact

Hotelling's classic model of spatial competition is adapted to estimate the impacts on grain price of the closure of one of three grain buyers on the Mississippi River in the vicinity of Scott County, Iowa. The customers of the buyer who is closing (River Gulf Grain Company) in Davenport, Iowa, are assumed to deliver their grain to a buyer in either Buffalo, Iowa, to the south or to a buyer in Clinton, Iowa, to the north. Calibration of Hotelling's framework to this situation leads to an estimated decline in grain bids of 1.5¢ per bushel for the buyer located in Clinton and by 2.5¢ per bushel for the buyer located in Buffalo. These estimates are based on an incremental transportation cost of 0.15¢ per mile between the seller's farm and the buyer. This price decline would reduce gross receipts of the farmers who currently deliver to Davenport by approximately $264,000 per year. The effect of lower price bids on gross receipts of all area farmers would be approximately $750,000 per year. Transportation costs would increase by an estimated $75,000 for those farmers who would have to haul their grain farther because of the closure.

scholarly journals Pengaruh Bauran Pemasaran Terhadap Perpindahan Merek Pelanggan Restoran Cepat Saji di Karawang Menggunakan Metode Markov Chains dan Game Theory

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Rianita Puspa Sari ◽  
Ahmad Surahman ◽  
Aditia Ayu Rahma Nabila
Keyword(s):  
Game Theory ◽  
Markov Chains ◽  
Market Share ◽  
Fast Food ◽  
Modern Society ◽  
Marketing Mix ◽  
Fast Food Restaurant ◽  
Product Price ◽  
Fast Food Restaurants ◽  
The Right

<p>As an area that has evolved into one of the industrial cities in Indonesia, Karawang has experienced rapid growth, especially in the fields of industry and business. This causes a change in lifestyle so that modern society is born<br />that is synonymous with consumptive behavior patterns which result in new needs that are presented practically in people's lives, one of which is restaurant food needs so that growth presence of fast food restaurants in Karawang. Competition between fast food restaurants can result in the brands switch to customers, so marketing mix strategy (9P) is needed (Product, Price, Promotion, Place, People, Process, Physical Evidence, Packaging, Payment). This study aims to analyze the effect of the marketing mix on brand movement, the rate of movement of fast food restaurant brands (X, Y, and Z) at Karawang, and the right strategy for companies to win the competition. The Markov Chains method is used to predict the market share of a product from the level of transfer of fast-food restaurant brands in Karawang, while Game Theory is to determine the right strategy in the marketing mix in the face of shifting customer brands. Research results obtained from 113 respondents who are valid and reliable,<br />with the relationship of the two low variables are negative at -0.083 interpreting that the marketing mix correlation with brand displacement has an inverse relationship so that the marketing mix of fast food restaurants increases, the customer's brand shift will be lower. The brand transfer rate is predicted to have a market share in the coming year of 33.2% X, 36.2% Y and 30.6% Z with competitive strategies that can be done by increasing the Promotion and Location of Fast Food Restaurants.</p>

scholarly journals Proposed Strategy for The Development of Turbomachinery Equipment Service in Indonesia (Case Study: PT XYZ)

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Sitti Annisa Mandasari ◽  
Harimukti Wandebori
Keyword(s):  
Market Share ◽  
Value Chain ◽  
Business Strategy ◽  
Swot Analysis ◽  
Service Development ◽  
Service Market ◽  
Sales Revenue ◽  
Differentiation Strategy ◽  
Competitor Analysis

PT XYZ is one of the companies in Indonesia focusing on heavy rotating equipment, repair and manufacture Not only domestically, the company also plans to expand the business internationally to other countries in South East Asia. By increasing the company’s sales revenue and expanding the market share, PT XYZ might be able to achieve the goal. However, in the sales it is found that the current operational management strategy can no longer sustain profitable and it makes the sales revenue drops for the last two years. The purpose of this research is to find and identify the strategy of the turbomachinery equipment service business to keep on growing in Indonesia. The conceptual framework used this strategy begins with analyzing the external environment by using PESTLE, Porter’s Five Forces, and competitor analysis. After external analysis, internal analysis is done by analyzing the resources and the value chain. Later on, all of the results will be summarized with a SWOT analysis. The results reveal that the company does not have a coherent business strategy. Thus, it evokes several problems in some internal parts of the company, such as an ineffective marketing strategy and improper resource allocation. The applied strategy in this research is the differentiation strategy. This differentiation strategy expansion will be the key to support the company’s development in the turbomachinery equipment service market in Indonesia. Meanwhile, the outcome is expected to extend PT XYZ’s market share, product development, and service development later in the future.

Auditor Market Power and Audit Quality Revisited: Effects of Market Concentration, Market Share Distance, and Leadership

2020 ◽  
pp. 0148558X2096624
Author(s):  
Marleen Willekens ◽  
Simon Dekeyser ◽  
Liesbeth Bruynseels ◽  
Wieteke Numan
Keyword(s):  
Market Power ◽  
Market Share ◽  
Financial Reporting ◽  
Audit Quality ◽  
Spatial Competition ◽  
Reporting Quality ◽  
Positive Association ◽  
Market Concentration ◽  
Jel Classification ◽  
Competition Theory

This study examines whether auditor market power is associated with audit quality. Regulators around the world have repeatedly expressed concerns about the high levels of supplier concentration, the limited number of audit suppliers in the audit market, and the potential adverse consequences of their (alleged) market power. Using U.S. data from 2009 to 2017, we examine the effect on audit quality of two competing measures of auditor market power: (a) a “traditional” market concentration measure (Herfindahl index) and (b) a competing measure derived from spatial competition theory (i.e., market share distance from the closest competitor). Following Aobdia, we infer audit quality from two measures of financial reporting quality: (a) the level of absolute abnormal accruals, and (b) the incidence of financial statement restatements. Our results indicate that industry market share distance is positively associated with audit quality, but we do not find an association between market concentration and audit quality. In addition, we find that the positive association between market share distance and audit quality only holds when the incumbent auditor is a market leader, although industry leadership itself is not significantly associated with audit quality. These findings suggest that audit quality is positively affected by a market leader’s industry market share dominance over its competitors rather than by industry specialization per se. JEL Classification: M4; L0

scholarly journals COOPERATIVE GAME THEORY APPROACH TO ESTABLISHING A LANDSCAPE AGREEMENT

2020 ◽  
Vol 9 (2) ◽  
Author(s):  
Kenichi SHIMAMOTO
Keyword(s):  
Game Theory ◽  
Key Words ◽  
Cooperative Game ◽  
Cooperative Game Theory ◽  
Participatory Approach ◽  
Free Rider ◽  
Theory Approach ◽  
Free Riders ◽  
Local Residents ◽  
Sustainable Landscape

As the need for a participatory approach towards a sustainable landscape development grows, this paper has applied the cooperative game theory to analyse the mechanism of entering a landscape agreement which requires the participation and initiative of local residents and stakeholders. The results confirmed that a landscape agreement only becomes possible with a certain level of supporters and the optimal situation is when all participants agree. Moreover, the possibility of free riders, which would prevent reaching a universal agreement, was also confirmed. The effect of government subsidies for landscape considerate building and the enforcement of penalties for building without were also examined. As a result, we learned that subsidies and the enforcement of penalties influences the number of supporters required for the landscape agreement and in preventing free riders. Key words: landscape agreement, subsidy, penalty, free rider.

scholarly journals Spatial Competition with Entry Deterrence considering Horizontal Product Differentiations

2013 ◽  
Vol 2013 ◽  
pp. 1-6
Author(s):  
Ai-nong Zhou
Keyword(s):  
Game Theory ◽  
Spatial Competition ◽  
Dynamic Game ◽  
Transportation Cost ◽  
Theory Model ◽  
Entry Deterrence ◽  
Setup Cost ◽  
Middle Point ◽  
Potential Entrant ◽  
Linear City

Spatial competition plays important roles in economics, which attracts extensive research. This paper addresses spatial competitions along with horizontal product differentiations and entry deterrence. By the dynamic game theory model about one firm and a potential entrant with different cost in a linear city, this paper finds that both the higher fixed setup cost and the higher transportation cost deter entrants. To efficiently deter the entrants, the establisher is inclined to locating at the middle point of the linear city.

Spatial Competition at the Intersection of the Large and Small Audit Firm Markets

2015 ◽  
Vol 35 (1) ◽  
pp. 23-45 ◽  
Author(s):  
Kenneth L. Bills ◽  
Nathaniel M. Stephens
Keyword(s):  
Market Share ◽  
Spatial Competition ◽  
Audit Fees ◽  
Differential Impact ◽  
Audit Firm ◽  
Audit Market ◽  
Big 4 ◽  
Audit Firms ◽  
The U.S ◽  
Jel Classifications

SUMMARY In this paper, we study spatial competition in the U.S. audit market while accounting for its two-tiered nature. We provide evidence on the differential impact that market share distances within and between the players in the large and small audit markets have on competition. We find that the market share distance from small audit firm competitors has a greater effect on the Big 4's audit fees than distances from other Big 4 competitors. This finding suggests that small audit firms play a significant part in the competitive landscape in local markets. Further, we find that audit fees are increasing with the distance between a small audit firm and its closest competing small audit firm while audit fees are decreasing with the distance between a small audit firm and its closest competing large audit firm. This suggests that while obtaining separation in market space from competing small audit firms reduces competitive pressure from other small audit firms, as a small audit firm gets closer to the market space of a large audit firm it is perceived as being more like the larger audit firm and is able to obtain a fee premium like that attained by the larger audit firms. JEL Classifications: M4; M40; M41; M42; M49.

Dilemmas of Interaction

2018 ◽  
Author(s):  
Peter Vanderschraaf
Keyword(s):  
Game Theory ◽  
Nash Equilibrium ◽  
Incomplete Information ◽  
Mathematical Theory ◽  
Free Rider ◽  
Noncooperative Game ◽  
Noncooperative Game Theory ◽  
Free Rider Problem ◽  
Game Theoretic ◽  
Principles Of Justice

Problems of interaction, which give rise to justice, are structurally problems of game theory, the mathematical theory of interactive decisions. Five problems of interaction are introduced that are all intrinsically important and that help motivate important parts of the discussions in subsequent chapters: the Farmer’s Dilemma, impure coordination, the Stag Hunt, the free-rider problem, and the choice for a powerless party to acquiesce or resist. Elements of noncooperative game theory essential to analyzing problems of justice are reviewed, including especially games in the strategic and extensive forms, the Nash equilibrium, the Prisoner’s Dilemma, and games of incomplete information. Each of the five motivating problems is reformulated game-theoretically. These game-theoretic reformulations reveal precisely why the agents involved would have difficulty arriving at mutually satisfactory resolutions, and why “solutions” for these problems call for principles of justice to guide the agents’ conduct.

Sign in / Sign up

Export Citation Format

Share Document