Using Game Theory in Libyan Cellular Market

Abstract

The Libyan cellular market still new, and it is primarily a competition between two major players. Also, there are serious steps inside the Libyan Ministry of Telecommunication to make a real competition inside the market. All those things have motivated the author to write this paper. The author is trying to help the leading players inside the market to know more about the best response that gave them best results. We have applied Game Theory because it is the strategic tool that gives you the best analysis and response when you have a competition between two players. The model that we have used here is Bertrand's model. This model is used when two companies are competing over price. We have noticed from our model analysis and our paper analysis that a price war might happen in this market. Therefore, we came up with recommendations to the regulators to organize the competition. Also, the author lists several recommendations to the operators that help them in case that price war happened in the market.