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Copyright Statement: This is an open access article licensed under a Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, even commercially as long as the original work is properly cited.
Using the Sub-Game Perfect Nash Equilibrium to Deduce the Effect of Government Subsidy on Consumption Rates and Prices
Digital Object Identifier (DOI) : 10.14569/IJACSA.2015.061102
Article Published in International Journal of Advanced Computer Science and Applications(IJACSA), Volume 6 Issue 11, 2015.
Abstract: Governments are interested in inducing positive habits and behaviors in its citizens and discouraging ones that are harmful to the individual or to the society. Taxation and legislation are usually used to discourage negative behaviors. Subsidy seems the politically correct way to encourage positive behaviors. In this paper, the Subgame Perfect Nash Equilibrium is used to deduce the effect of the government subsidy on the user consumption, prices and producer and distributor profits.
Keywords: game-theory; subsidy
Dr. Magdi Amer and Dr. Ahmed Kattan, “Using the Sub-Game Perfect Nash Equilibrium to Deduce the Effect of Government Subsidy on Consumption Rates and Prices” International Journal of Advanced Computer Science and Applications(IJACSA), 6(11), 2015. http://dx.doi.org/10.14569/IJACSA.2015.061102
@article{Amer2015,
title = {Using the Sub-Game Perfect Nash Equilibrium to Deduce the Effect of Government Subsidy on Consumption Rates and Prices},
journal = {International Journal of Advanced Computer Science and Applications},
doi = {10.14569/IJACSA.2015.061102},
url = {http://dx.doi.org/10.14569/IJACSA.2015.061102},
year = {2015},
publisher = {The Science and Information Organization},
volume = {6},
number = {11},
author = {Dr. Magdi Amer and Dr. Ahmed Kattan}
}
