Game Theory Approach: Profit Calculation in Business
Published: 2024
Author(s) Name: Samara Mubeen, Amitha S. Krishna, Bhavana B. S., Bhavana M. S. and Charunethra M. |
Author(s) Affiliation: Department of IS&E, JNNCE, Shimoga, Karnataka, India.
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Abstract
Business is back bone of transaction between buyer and supplier firms. Evolution of internet has helped customers to do shopping online 24X7 using online shopping portal, this lead to categorization of e-commerce into B2C, B2B, C2C etc. Identifying the authentic manufacturer and suppliers is difficult as the online transactions are carried on. There are so many ways for finding out the authentic stackeholder. Here in this paper two stages have been made in first stage a game theory concept is used to identify authentic suppliers the manufacturer can choose for finding the reliable supplier’s using Extensive decision tree with perfect information as decision metrics. In second stage after filtering the suppliers again Stackelberg model is used for analysis of profit and selecting suppliers who will gain huge profit. Overall, a comprehensive framework for analyzing the profitability of businesses using game theory principles. It can help manufacturer make informed decisions about their strategies and provide insights into the competitive landscape of the market.
Keywords: Extensive decision tree, Manufacturer, Stackelberg model, Supplier firms.
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