Game theoretic derivations of competitive strategies in conjoint analysis

S. Chan Choi, Wayne S. Desarbo

Research output: Contribution to journalArticlepeer-review

36 Scopus citations


While conjoint analysis has been applied in a wide variety of different contexts in Marketing, most applications fail to explicitly consider retaliatory reactions from competitors. In this paper, a methodological extension is developed for conjoint analysis by explicitly modeling competition in a game theoretic context. The Nash equilibrium concept is employed to model competitive reactions to produce design, and its implications for reactive product strategies are discussed. The optimal product design problem for each firm is formulated as a nonlinear integer programming problem, which is solved via a specialized branch and bound method combined with a heuristic. In order to compute a Nash equilibrium, a sequential iterative procedure is proposed. The proposed procedure is illustrated under several scenarios of competition using previously published conjoint data.

Original languageEnglish (US)
Pages (from-to)337-348
Number of pages12
JournalMarketing Letters
Issue number4
StatePublished - Oct 1993

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics and Econometrics
  • Marketing


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