Nash Equilibrium
12月
30日
0 tweet
What does it relate to my business strategy?
Let me explain in the simplest term.
Let's say there are three web hosting companies selling almost same products. When the company A reduce the price, A sales goes up. So the B follow and the sales of B goes up. C will reduce the price to match others. At this point nobody has the price advantage.
All of the sudden, B reduce the price again and sales goes up. A and C follow. They continue until nobody can reduce any more. At this point, nobody can reduce r increase the price. This situation is called Nash Equilibrium. Nobody can move unless everyone moves all together.
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Kenichi Uchikura
AN ENTREPRENEUR & INVENTOR
President / CEO
Uchikura & Co. LLC.
ken＠uchikura.co
Pacific Software Publishing, Inc.
ken.uchikura＠pspinc.com
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