Abstract:
In the paper a game-theoretical model of quality choice under competition is suggested. The game-theoretical model is presented as a two-stage game where production companies compete on an industrial market and consumer's taste to quality in non-uniformly distributed. The strong Nash equilibrium in the investigated game was obtained in explicit form which allowed us to evaluate prices, companies market shares and revenues in the equilibrium. A case study for Internet-trading systems was used to approve the suggested quality choice mechanism.
Keywords:quality evaluation, quality measurement, consumer's taste to quality, quality choice, two-stage game, Nash equilibrium, Stakelberg equilibrium, Pareto-optimal solution, optimal quality differentiation, index of consumers satisfaction.
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