DOI: 10.5176/2251-3388_1.1.18
Authors: Papusson Chaiwat
Abstract:
The quality competition when there are more than two firms in the market is so complicated, especially when quality uncertainty appears in the market. However, both consumers’ utilities and the Nash equilibrium can be found by Monte Carlo simulation and solved the results by using iterative dominance methods. For the case that all consumers are informed, the outcomes is the best point for social, so the other cases have some bad effects coming from quality uncertainty that makes utilities of consumers will be lower than the best point
Keywords: Quality competition, Quality uncertainty, Monte Carlo simulation
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