Can Game Theory Solve Marketing Problems?
Game theory has been used a long time ago in military strategy. In Marketing, game theory can be explained as persuasion element for the organization to consider about which the competitors will likely move and the impact for this movement towards their own strategy. The structure of game theory was constructed by Von Neumann and Morgenstern. There are vast debated by past researcher about possibility to apply this game theory to solve marketing problems. Marketing scholars claimed that game theory can be a tool to identify or predict competitive behavior. In the current marketing situation, issues such as pricing decision and identifying product to be sold can be explain and predict by using this game theory. Hence, it is important and highly recommended for marketing manager to understand the basis of game theory in decision making process.