Game Theory Applications in Modern Business Strategy: Optimizing Competitive Decision-Making in Uncertain Markets

Abstract

Game theory, a fundamental pillar of Management Science & Engineering (MS&E), provides businesses with mathematical models to optimize decision-making in competitive and uncertain environments. This research explores key game-theoretic principles such as Nash Equilibrium, strategic pricing models, and negotiation theory, analyzing their impact on corporate strategies, mergers, and market competition. By investigating real-world applications in pricing wars, supply chain negotiations, market entry strategies, and auction theory, this study aims to demonstrate the effectiveness of game theory in shaping modern business dynamics. Quantitative analysis, case studies, and mathematical modeling will provide empirical evidence to support the strategic applications of game theory in corporate decision-making.

Keywords: Game Theory, Business Strategy, Competitive Decision-Making, Nash Equilibrium, Strategic Pricing, Market Entry Strategies, Supply Chain Negotiations, Auction Theory, Bargaining Models, Bertrand Competition, Cournot Competition, Stackelberg Competition, Corporate Mergers, Risk Assessment, Mathematical Modeling, Economic Behavior, Industrial Organization, Decision Science, Quantitative Analysis, Market Uncertainty, Negotiation Theory, Oligopolistic Markets, Profit Maximization, Business Economics, Strategic Planning, Digital Advertising Auctions