Price and Quality Competition While Envisioning a Quality-Related Product Recall
Explore a dynamic game theory seminar that delves into the complex interplay of pricing strategies and quality investments in competitive markets facing potential product recalls. Analyze a two-stage Nash game model where firms must balance quality investments against the risk of severe, quality-related recalls that could render products hazardous and necessitate market removal. Examine how consumer sensitivity to price and quality can shift following a recall event, and understand the far-reaching impacts of product failures on both the affected firm and its competitors. Gain insights into strategic decision-making processes for competing firms operating under the constant threat of quality-related recalls, drawing from a utility-based model presented by Amirhossein Jafarzadeh Ghazi from the University of Ontario Institute of Technology.