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ArticleName Game theory and strategy of pricing for recycled materials
ArticleAuthor Kruzhkova G. V., Kostyukhin Yu. Yu.

National University of Science and Technology "MISIS" (MISIS), Moscow, Russia

G. V. Kruzhkova, Senior Lecturer of a Chair of an Engineering Cybernetics, e-mail:
Yu. Yu. Kostyukhin, Professor of a Chair of Industrial Management


Pricing policy is an important element of competitive business strategy. In this paper the rationale for pricing decisions for the enterprises of secondary metals market purchases of electronic scrap as a raw material for processing, resulting in a mathematical theory of games. The possibility of determining the company's strategy in an oligopolistic market can be achieved through the use of noncooperative behavior models, namely models of zero-sum games. It is assumed that in a conflict situation involving two companies that are interested in buying and o-informed actions of a competitor. Preferences for the selection of suppliers processor depend only on the purchase price. This is a zero-sum game c. If purchasers provide the equilibrium price, with equal probability, each of them can get the raw materials. Such strategies are in equilibrium, as the strategies selected components of the saddle point. In this case, the preferences of the supplier will depend on other factors. But if, there is provision to increase the purchase price, one of the companies can offer the seller a higher price than its competitors, and c are more likely to get a life. The situation is described by an asymmetric distribution of the information model “type of leader behavior — led to the two-person game”. Each of the players, having received information about the strategy of another player, creates a best response. A common method of finding solutions play any (finite) dimension is the reduction of two-person game with a zero-sum to the problem of linear programming, which allows to formalize the economic situation of conflict and to find optimal strategies for the interaction of competition as a solution to the problem of linear programming. The above models allow companies to formalize the behavior of in an oligopolistic market and find a solution to the game in the face of uncertainty. This will enable the development of recommendations for strategic decision-making from the perspective of game theory to optimize pricing strategies. Thus, the proposed rules non-cooperative game models of interaction and competition are the principles of the implementation of pricing strategies on the basis of which is possible to realize longterm business plans to improve the economic condition.

keywords Strategy, pricing, game theory, secondary raw materials, electronic scrap, zero-sum game, oligopolistic market, the saddle point, the conflict situation, a situation of equilibrium

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