GAMES THEORY: WHAT HAS IT TO DO WITH NIGERIA TELECOM INDUSTRY?
Abstract
This study examines the application of game theory to the Nigerian telecommunication industry through analytical modeling and deductive reasoning. The study addresses the question: what has game theory to offer the Nigerian telecom sector? Guided by the need to understand strategic decision-making in oligopolistic markets, the analysis employs illustrative parameters to apply Cournot, Bertrand, and Stackelberg models, explaining output competition, price competition, and strategic leadership respectively. The models predict that telecommunication firms in Nigeria operate under conditions of strategic interdependence where each firm's decision influences rival firms. The Cournot framework demonstrates that firms compete through output decisions and tend toward equilibrium. The Bertrand model illustrates that price competition can lead to reduced profits when firms offer similar services, while the Stackelberg model emphasizes that firms who take the lead in introducing new products influence follower firms. The study demonstrates that game theory provides a relevant analytical framework for understanding pricing strategies, market rivalry, innovation, and competitive positioning among firms. It concludes that game theory offers a structured approach to understanding telecom firm behavior in competitive environments. The study suggests that firms should adopt strategic planning, maintain balanced pricing strategies, invest in innovation, and leverage leadership advantages to sustain competitiveness.
This article is available as a PDF download
Published in Wellspring University Journal of Social and Management Sciences
ISSN: 2616-1296
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
ARTIFICIAL INTELLIGENCE-ENABLED HUMAN RESOURCE MANAGEMENT, EMPLOYEE TRUST, AND WORKFORCE CAPABILITY: THE MEDIATING ROLE OF DIGITAL HR COMPLIANCE
EMEKA ALEX AKWAEZE, PhD, UMELUE OGOCHUKWU GLORIA, PhD, UME EUCHARIA CHIBUZO, PhD, UKODHIKO JONATHAN AJIRIOGHENE (MHR), JUDE NWABUGWU OHAJA
Oct 15, 2026
This study examined the relationship between Artificial Intelligence in Human Resource Management (...
View ArticleTHE IMPACT OF GLOBALIZATION ON ECONOMIC GROWTH IN NIGERIA
BAKER, ESTHER OYEINTARI, PhD
Oct 13, 2026
This study examined the relationship between globalization and economic growth in Nigeria over the ...
View ArticleSECURING NIGERIA BLUE ECONOMY: A MILITARY-CIVILIAN LOGISTICS FRAMEWORK FOR THE GULF OF GUINEA
NWOLOZIRI, CHINYEAKA NWOKODI, CHARLES ADOKIYE PRECIOUS, TIMOTHY IDIAGHE
Sep 29, 2026
Maritime insecurity remains a critical challenge to Nigeria Blue Economy development and operational...
View Article