Application on Game Theory: Cement Industry in Egypt - Arabian Cement Company
Doaa Mohamed Salman Abdou, Department of Economics, October University for Modern Sciences and Arts (MSA), Giza, Egypt.
Nadeen Sherif El Adaway, Department of Economics, October University for Modern Sciences and Arts (MSA), Giza, Egypt.
This research paper explores the cement industry in Egypt by overlooking the history of the industry and taking the Arabian cement company as an example. The cement industry in Egypt is performing price discrimination as a result of the high market power that the firms have. To understand more about price discrimination and game theory, a literature review has been made in the paper about is price discrimination, the types of price discrimination, game theory, strategies of game theory and relation between price discrimination and game theory. Last but not least, a case study about the industry in Egypt is made during the period of 2013-2017, and it was concluded that the cement market in Egypt is an oligopoly and third degree price discrimination is done by competitors in the market and game theory strategies are applied.
Game Theory, Price Discrimination, Industry
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