Game theory model for the development of optimal strategy towards innovative products manufacturing at the enterprise
-
DOIhttp://dx.doi.org/10.21511/ppm.15(3-1).2017.12
-
Article InfoVolume 15 2017, Issue #3, pp. 285-294
- 1111 Views
-
752 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The carried out research confirms the expediency of economic mathematical modeling (game theory) implementation in practice of economical activity. The paper presents a designed game theory model of optimal innovative strategy for product manufacturing at the enterprise considering the expenses due to the production, storage and transportation of basic goods; extra expenses for the development of innovative products and supplementary costs granted by the company for the innovative products development in order to decrease possible material losses by the defined reasons.
The developed game theory model aims to develop the optimal strategy for innovative products manufacturing was implemented and approved at the enterprise, which produces different means of operative communication. The assigned solution of a task included the calculation of the company’s optimal innovative product release with the aim of receiving a maximum income from the developed products realization. The model enables to define the percentage ratio of the efficient manufacturing of innovative products at the enterprise, considering the state of the market and competitive behavior in overall product assortment, the possibility of this ratio optimal correction in order to maximize the income from innovative products realization.
Performed calculations allow the company’s managers to determine the beneficial and non-beneficial market state for certain types of innovative products and to improve the decision making process concerning the increase or the reduction of innovative products manufacturing.
- Keywords
-
JEL Classification (Paper profile tab)C71, O31, O32
-
References36
-
Tables2
-
Figures0
-
- Table 1. The data on the range of products manufactured at the enterprise
- Table 2. Calculated optimal strategies of improved product manufacturing
-
- Barney, J. (1986). Strategic Factor Markets: Expectations, Luck and Business Strategy. Management Science, 32(10), 1231-1241.
- Binmore, K. (2007). Playing for Real: A Text on Game Theory. New York: Oxford University Press.
- Blekuell, D., & Girshik, M. (1958). Теория игры стратегических решений. [Teoriya igri statisticheskih resheniy]. Moskva: Izdatelstvo inostrannoy literaturyi.
- Brandenburger, A., & Neylbaff, B. (2012). Конкурентное сотрудничество в бизнесе. [Konkurentnoe sotrudnichestvo v biznese]. Moskva: Keys.
- Cachon, G., & Netessine, S. (2003). Game theory in supply chain analysis. (Working paper). The Wharton School of Business, University of Pennsylvania, Philadelphia, PA.
- Drucker, P. (1986). Innovation and entreprenership: Practice and principles. London: HarperCollins Publishers.
- Dyubin, G., & Suzdal, V. (1981). Введение в прикладную теорию игр. [Vvedenie v prikladnuyu teoriyu igr]. Moskva: Nauka, Glavnaya redaktsiya fiziko-matematicheskoy literaturyi.
- ELFakir, & Tkiouat. (2016). A multiagent game theoretical approach to adverse selection in corporate financing. Investment Management and Financial Innovations, 13(2-2), 292-299.
- Fudenberg, D., & Tirole J. (1991). Game Theory. Cambridge, MA: MIT Press.
- Gallini, N., & Winter R. (1985). Licensing in the Theory of Innovation. Rand Journal of Economics, 2, 237-252.
- Gibbons, R. (1992). Game Theory for Applied Economists. Princeton, NJ: Princeton University Press.
- Grant, R. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, Winter Special Issue, 17, 109-122.
- Greif, A. (1996). Economic History and Game Theory. (A Survey Stanford Working Paper).
- Hurwicz, L., & Reiter, S. (2006). Designing Economic Mechanisms. New York: Cambridge University Press.
- Jaumotte, F., & Pain, N. (2005). An Overview of Public Policies of Support Innovation. (OECD Economics Department Working Paper, 456).
- Kaiser, U. (2001). Product Innovation and Product Innovation Marketing: Theory and Microeconometric Evidence. (ZEW Discussion Paper).
- Katkalo, V. (2006). Эволюция теории стратегического управления. [Evolyutsiya teorii strategicheskogo upravleniya]. Sant-Peterburg: Izdatelskiy dom Sant-Peterburgskogo gosudarstvennogo universiteta.
- Knight, F. (1994). The concept of risk and uncertainty. THESIS, 5, 12-28.
- Lamben, Zh. (1996). Стратегический маркетинг. [Strategicheskiy marketing]. Sant-Peterburg: Nauka.
- Markides, K. (2010). Новая модель бизнеса. Стратегии безболезненных инноваций. [Novaya model biznesa. Strategii bezboleznennyh innovatsi]. Moskva: Vidavnitstvo Yurayt, Alpina Pablisher.
- Maskin, E. (2011). Commentary: Nash equilibrium and mechanism design. Games and Economic Behavior, 71(1), 9-11.
- McAfee Preston, R. (2005). Competitive Solutions: The Strategist’s Toolkit. Princeton, NJ: Princeton University Press.
- McMillan, J. (1996). Games, Strategies, and Managers: How Managers Can Use Game Theory to Make Better Business Decisions. New York: Oxford University Press.
- Mitchell, T. J., & Hustad, T. P. (1981). The Analysis of Options Approach to New Product Screening. Research in Marketing, 4, 143-179.
- Muto, S. (1987). Possibility of Relicensing and Patent Protection. European Economic Review, 1, 927-946.
- Myerson, R. (1997). Game Theory: Analysis of Conflict. Cambridge, MA: Harvard University Press.
- Popov, A. (2008). Инновационная экономика: лекция. [Innovatsionnaya ekonomika: lektsiya]. Tambov: Izdatelstvo Tambovskogo gosudarstvennogo tehnicheskogo universiteta.
- Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.
- Porter, M. (1998). Competitive Strategy. Techniques for Analyzing Industries and Competitor. New York: The Free Press.
- Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 68(3), 79-91.
- Rumelt, R., & Lamb, R. (Eds.). (1984). Towards a strategic theory of the firm. In Competitive Strategic Management (pp. 556-570). Englewood Cliffs, NJ: Prentice Hall.
- Santo, B. (1990). Innovation as a tool for economic development. Moscow: Progress.
- Somaya, D., Teece, D., & Wakeman, S. (2011).Innovation in Multi-Invention Contexts: Mapping Solutions to Technological and Intellectual Property Complexity. California Management Review, 53(4), 47-74. University of California, Berkeley.
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management, Strategic Management Journal, 18(7), 509-534.
- Von Neumann, J., & Morgenstern O. (1944). Theory of Games and Economic Behavior. Princeton, NJ: Princeton University Press.
- Winer, R. (2002). Marketing Management. Milan (IT): Apogeo.