Journal of Industrial Engineering and Management Studies

Current Issue

By Issue

By Author

By Subject

Author Index

Keyword Index

About Journal

Aims and Scope

Editorial Board

Indexing and Abstracting

Related Links

FAQ

Double-Blind Peer Review

News

Metrics

The competitive advantages analysis of pharmaceutical industry strategic behaviors by game theory

Document Type : Original Article

Authors

1 Tehran University, Iran, Tehran.

2 Department of Industrial Management, faculty of Management, Tehran University, Tehran, Iran.

3 Department of Industrial Management, faculty of Economics, Tehran University, Tehran, Iran.

4 Department of Industrial Management, faculty of Management, Beheshti University, Tehran, Iran.

Abstract

Game theory is the study of mathematical models and cooperation between intelligent rational decision-makers. This paper provides a flexible model to calculate pay-off matrix based on several importance factors. This model is adapted by cooperative game and developed for some competitive advantages sections in pharmaceutical industry. An optimum solution is derived by considering Nash equilibrium method for each section. Cooperative game extended for three players in a common market. Each player is looking for increase its market share with respect to participation of other competitors. Due to factors like capability of players to perform their strategic behaviors, market share adjustment by face to face comparison, the ability of any player in defined section and the importance of competitive advantage for players is basis of the calculation. A random example has been generated that the result of which led to achieve equilibrium market share for three players.      

Keywords

References
Anthony Kelly, 2003. “Decision Making Using Game Theory, An introduction for managers”, Cambridge University Press. 
Azin Shakiba Barough, Mojtaba Valinejad Shoubi, Moohammad Javad Emami Skardi, 2012, “Application of Game Theory Approach in Solving the Construction Project Conflicts”, Procedia - Social and Behavioral Sciences, Vol. 58, pp. 1586 – 1593.
Biyan Li, Rui Meng, 2011, “PCRC Evolutionary Game Method and Its Application in Multi-Objective Optimization Design”, Procedia Engineering, Vol. 15, pp. 4936 – 4943.
H. Yu, T. Lima, J. Ritchie, R. Sunga, S. Louchart, I. A. St­nescu, and I. Roceanu, 2012, “Exploring the application of computer game theory to automated assembly”, Procedia Computer Science, Vol. 15, pp. 266 – 273.
Joyee Deb, Ehud Kalai, 2015, “Stability in large Bayesian games with heterogeneous players”, Journal of Economic Theory, Vol. 157, pp. 1041–1055.
Marianthi V. Podimata, Panayotis C. annopoulos, 2015, “Evolution of Game Theory Application in Irrigation Systems”, Agriculture and Agricultural Science Procedia, Vol. 4, pp. 271 – 281.
Meng Xu, Da-Fang Zheng, C. Xu, Lixin Zhong, P.M. Hui, 2015, “Cooperative behavior in N-person evolutionary snowdrift games with punishment”, Physica A, Vol. 424, pp. 322–329.
M. Álvarez-Mozos, R. van den Brink, G. van der Laan and O. Tejada, 2013, “Share functions for cooperative games with levels structure of cooperation”, European Journal of Operational Research.
Navid Rashedi, Hamed Kebriaei, 2014, “Cooperative and non-cooperative Nash solution for linear supply function equilibrium game”, Applied Mathematics and Computation, Vol. 244, pp. 794–808.
Osborne, Martin J., and Ariel Rubinstein, 1994, “A Course in Game Theory”, Cambridge, MA: MIT, Print.:14.
Steffen Jorgensen, Georges Zaccour, 2014, “A survey of game-theoretic models of cooperative advertising”, European Journal of Operational Research, Vol. 237, pp. 1–14.
Shin Kishimoto, 2013, “Stable bargaining outcomes in patent licensing: A cooperative game approach without side payments”, Mathematical Social Sciences, Vol. 66, pp. 183–195.
Xu Xiaofeng, Ruan Aiqing, 2012, “The Construction of Shapley Value in Cooperative Game and its Application on Enterprise Alliance”, Physics Procedia, Vol. 24, pp. 1377 – 1384.
Zhifu Tao, Xi Liu, Huayou Chen, Zhuqiang Chen, 2015, “Group decision making with fuzzy linguistic preference relations via cooperative games method”, Computers & Industrial Engineering, Vol. 83, pp. 184–192.
Marzena Rostek, Marek Weretka, 2015, “Information and strategic behavior”, Journal of Economic Theory, Vol. 158, Part B, pp. 536–557.
Herakles Polemarchakis, 2013, “The present and future of game theory: strategic behavior and the financial crisis”.
Yingxue Zhao, Shouyang Wang, T.C.E. Cheng, Xiaoqi Yang, Zhimin Huang, 2010, “Coordination of supply chains by option contracts: A cooperative game theory approach”, European Journal of Operational Research, Vol. 207, pp. 668–675.
R. Uthayakumar, S. Priyan, 2013, “Pharmaceutical supply chain and inventory management strategies for optimization: A study on pharmaceutical company and hospital”, Operations Research for Health Care, Vol. 2, No. 3, pp. 52-64.
Hamidreza Alipour, Karim Davabi, Zahra Mehrabi, Masoumeh Moshtaghi, 2010, “The role of knowledge management in the achievement of competitive advantage: A case study of Iran Alborz Insurance Company in Western Mazandaran”, African Journal of Business Management, Vol. 4, No. 7 pp. 1346-1350.
Epetimehin F., 2011, “Achieving Competitive Advantage in Insurance Industry: The Impact of Marketing Innovation and Creativity”, Journal of Emerging Trends in Economics and Management Sciences (JETEMS), Vol. 2, pp. 18-21.
Nixon Kamukama, Augustine Ahiauzu, Joseph M. Ntayi, 2011, “Competitive advantage: mediator of intellectual capital and performance”, Journal of Intellectual Capital, Vol. 12, No. 1, pp. 152-164.
Srivastava, M et al, 2013,” Building a Sustainable Competitive Advantage”, J. Technol. Manag. Innov. , Vol. 8, No. 2, pp. 47-60.
Tapan K. Panda, S. Sriram, 2013, “Competitive Advantage through Mergers and Acquisitions for Indian Pharmaceutical Companies”, International Conference on Business Management & Information Systems, Great Lakes Institute of Management, Chennai, Vol. 2.
Phil Nethercote, Joachim Ermer, 2015, “Analytical Validation within the Pharmaceutical Lifecycle, Method Validation in Pharmaceutical Analysis: A Guide to Best Practice”, Second Edition.
Journal of Industrial Engineering and Management Studies
Volume 2, Issue 2 - Serial Number 2
December 2015
Pages 83-95
Files
Share
How to cite
Statistics