Document Type : Original Research Paper
Authors
Department of Decision Sciences and Knowledge Engineering, School of Management, Kharazmi University, Tehran, Iran
Abstract
Companies in the insurance market can be more successful in the competition when they carefully consider the mutual behaviors and strategies of competitors in order to determine the appropriate strategy for increasing the share of insurance in all economic activities, in addition to considering internal capabilities. An effective approach for analyzing the mutual behavior of competitors and making decisions based on it is game theory. In this research, with the help of game theory, insurance industry market modeling has been done with the aim of increasing the market share. For this purpose, the competition between three private insurance companies with the aim of maximizing the three criteria of portfolio, profit, and income (the total income that is recognized and collected in the heading of investment income, in the financial statements of insurance companies) has been investigated and using the theory Games are modeled. The result of applying the theory of games shows the Pareto solution. In this competition, both by emphasizing the lost utility of each company and by emphasizing the total lost utility of all companies, a single result has been obtained. Insurance companies can use the approach presented in this research to determine their best strategy for successful presence in the market and increase their market share in competition with other competitors.
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