APPLICATION OF GAME THEORY IN DECISION MAKING
Abstract
This research investigates the application of Game theory in Decision Analysis, focusing on competitive pricing strategies in the Nigerian telecommunications sector. Game theory offers a mathematical framework for analyzing interactions between rational decision-makers, making it a valuable tool for Operations Research and Strategic Planning. Using a non-cooperative game model, the study examines pricing decisions between MTN Nigeria and Airtel Nigeria through a Payoff Matrix and Nash Equilibrium analysis. Data was collected from Nigerian Communications Commission reports, financial statements, and market surveys, forming the basis for quantitative modeling and sensitivity testing. Results indicate that aggressive pricing is a dominant strategy in a competitive market, leading to mutual revenue compression. The study demonstrates how game-theoretic models enhance decision-making by predicting competitor behavior and guiding optimal strategies. These findings provide insights for policymakers, managers, and researchers, emphasizing the relevance of Mathematical Modeling and Decision Analysis in complex, competitive environments
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