Dynamic game strategies for corporate demand models in national economy

Abstract

This paper deals with dynamic game strategies and considers the simulation results for competing corporate companies under the influence of the central government in a national economy. The private companies aim the maximization of their quadratic objective function of the sales revenue subject to the companies' demand market econometric models under that the central government determines the optimal control policy derived by minimizing the quadratic welfare loss function subject to macroeconometric models. After recieving information from the government, the competing companies develop the various game situations. We consider the game solutions under the influence of the government policy in national economy by using the simplified econometric models of two big Japanese automobile companies, Toyota and Nissan, and Japan as a case study.