Application of game theory for the strategic evaluation of hard discount commercial formats

Abstract

The objective of the present investigation was to apply game theory to evaluate commercial strategies in hard discount commercial formats. The study was classified as quantitative, a survey was carried out and the game theory technique implemented in SoftProsp was applied. As a result, it was obtained that most consumers prefer to use powdered detergent. Regarding the determination of the price, the result where both stores play their dominant strategies is {50 | 50}, which would be the solution to the game. For the application of promotions, when implementing the process of iterative elimination of strictly dominated strategies, it is obtained that the balance of the game is the combination of strategies A2 (Deferred Gifts) and D2 (Discount Coupons). Finally, it is concluded that the evaluation of promotional strategies of the hard discount through game theory, allowed to establish that the equilibrium of the game occurs when the ARA Stores apply the deferred gift strategy and the D1 Stores apply the discount coupon strategy, because the crossing of these strategies is optimal for each player.