The competitive advantages analysis of pharmaceutical industry strategic behaviors by game theory

Game theory is the study of mathematical models and cooperation between intelligent rational decision-makers. This paper provides a flexible model to calculate pay-off matrix based on several importance factors. This model is adapted by cooperative game and developed for some competitive advantages sections in pharmaceutical industry. An optimum solution is derived by considering Nash equilibrium method for each section. Cooperative game extended for three players in a common market. Each player is looking for increase its market share with respect to participation of other competitors. Due to factors like capability of players to perform their strategic behaviors, market share adjustment by face to face comparison, the ability of any player in defined section and the importance of competitive advantage for players is basis of the calculation. A random example has been generated that the result of which led to achieve equilibrium market share for three players.