ENBIS-17 in Naples

9 – 14 September 2017; Naples (Italy) Abstract submission: 21 November 2016 – 10 May 2017

Two-Player Zero Sum Games with Fuzzy Payoffs for Different Risk Levels

12 September 2017, 14:50 – 15:10

Abstract

Submitted by
Ozlem Testik
Authors
Yesim Koca (Hacettepe University), Ozlem Muge Testik (Hacettepe University)
Abstract
This study aims to define best strategies for competing two online shopping sites by using a zero sum game with fuzzy payoffs. Since the importance of the game mostly varies for the stores in this competitive environment, different risk levels are considered for the players. The shopping sites are assumed offering the same products for the same prices; in order to focus only on determined marketing activities. Marketing activities are regarded as game strategies and payoffs for a website are determined in terms of the number of people preferring that website among the constant number of customers which are known to make the purchase from one of these sites. Potential customers’ opinions are investigated by asking them to state which site they would prefer for each strategy combination and results are modeled by fuzzy numbers due to subjectivity and uncertainty of the data. After that the game is converted to a multi-objective linear programming problem and optimal solution of this problem is obtained. This optimal solution refers to the optimal strategies for players. The results are discussed for different customer characteristics (age, gender, profession) and suggestions for online shopping websites are presented.

Return to programme