The Games Retailers Play
Journal of Marketing Management, Vol. 12, No. 8, pp. 695-706, 1996
13 Pages Posted: 20 Nov 2012
Date Written: 1996
Game theory has helped to clarify and simplify a wide variety of business decisions, yet has rarely been applied in a retailing context. This article pairs three contemporary retailing issues with three well-known strategic games in an effort to spark the imagination of the strategist and the student. The issues of trading hours, saturation and investment in innovation are examined through the application if the Prisoner's Dilemma, Tragedy of the Common, and Boxed Pigs. Implications of the games for retail decision-making and for management education are explored.
Keywords: game theory, retailing
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