Vol.11, No.4, November 2022.                                                                                                                                                                              ISSN: 2217-8309

                                                                                                                                                                                                                        eISSN: 2217-8333


TEM Journal



Association for Information Communication Technology Education and Science

Duopoly Pricing Strategy in Spatial Competition Using Constant-sum Games


Patricia Holzerova, Zuzana Cickova


© 2022 Patricia Holzerova, published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)


Citation Information: TEM Journal. Volume 11, Issue 4, Pages 1439-1450, ISSN 2217-8309, DOI: 10.18421/TEM114-03, November 2022.


Received: 21 June 2022.

Revised:   23 August 2022.
Accepted:  27 August 2022.
Published: 25 November 2022.




Spatial games focused on imperfect competition are specific area of game theory dealing with behavior of market competitors. This article focuses on the formulation and solution of specific oneround spatial constant-sum game of two players deciding on the location of their branches with aim to attract customers and maximize revenues. The space is characterized by graph, in which nodes represent location of customers and possible place of service. The main goal is to present issue of determining product price of one player, based on predetermined price of his opponent. This determination takes place simultaneously with the location selection of both players.


Keywords –duopoly, imperfect competition, matrix games, pricing, spatial competition.



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