IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v26y2005i6p397-405.html
   My bibliography  Save this article

Subgame perfection and the ethics of competition

Author

Listed:
  • Daniel G. Arce M

    (Rhodes College, 2000 North Parkway, Memphis, TN 38112, USA)

Abstract

This paper integrates economics and business ethics through the use of the subgame perfection|backward induction decision rule. It is shown that textbook examples of subgame perfection differ in their ethical complexity. Specifically, predatory pricing is difficult to justify on both game-theoretic and ethical grounds, whereas 'poison pill' takeover defenses have complex economic and ethical ramifications. Further, I employ backward induction to examine two additional areas of ethics and management decision-making: product recall (the Ford Explorer and Firestone tires), and price versus advertising competition. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Daniel G. Arce M, 2005. "Subgame perfection and the ethics of competition," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(6), pages 397-405.
    • Handle: RePEc:wly:mgtdec:v:26:y:2005:i:6:p:397-405
    DOI: 10.1002/mde.1239
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/mde.1239
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.1239?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. G. Daniel & M. Arce & Todd Sandler, 2005. "The Dilemma of the Prisoners’ Dilemmas," Kyklos, Wiley Blackwell, vol. 58(1), pages 3-24, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel G. Arce & Walter Enders & Gary A. Hoover, 2008. "Plagiarism And Its Impact On The Economics Profession," Bulletin of Economic Research, Wiley Blackwell, vol. 60(3), pages 231-243, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leonardo Becchetti & Vittorio Pelligra & Francesco Salustri, 2017. "Testing for heterogeneity of preferences in randomized experiments: a satisfaction-based approach applied to multiplayer prisoners’ dilemmas," Applied Economics Letters, Taylor & Francis Journals, vol. 24(10), pages 722-726, June.
    2. Leonardo Becchetti & Vittorio Pelligra & Francesco Salustri, 2018. "The impact of redistribution mechanisms in the vote with the wallet game: experimental results," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(4), pages 595-619, December.
    3. Arce, Daniel G. & Sandler, Todd, 2009. "Fitting in: Group effects and the evolution of fundamentalism," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 739-757, September.
    4. Karen Pittel & Dirk Rübbelke, 2012. "Transitions in the negotiations on climate change: from prisoner’s dilemma to chicken and beyond," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 12(1), pages 23-39, March.
    5. Babajanyan, S.G. & Melkikh, A.V. & Allahverdyan, A.E., 2020. "Leadership scenarios in prisoner’s dilemma game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 545(C).
    6. Leonardo Becchetti & Francesco Salustri & Vittorio Pelligra & Alejandra Vásquez, 2018. "Gender differences in socially responsible consumption. An experimental investigation," Applied Economics, Taylor & Francis Journals, vol. 50(33), pages 3630-3643, July.
    7. Daniel Arce & Sneha Bakshi & Rachel Croson & Catherine Eckel & Enrique Fatas & Malcolm Kass, 2011. "Counterterrorism strategies in the lab," Public Choice, Springer, vol. 149(3), pages 465-478, December.
    8. Leonardo Becchetti & Fabio Pisani & Luca Raffaele, 2023. "Co-planning and co-design as progress in the implementation of welfare services," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 70(3), pages 301-322, September.
    9. Binghui Wu & Tingting Duan & Jianmin He, 2018. "Dynamics Evolution of Trading Strategies of Investors in Financial Market," Computational Economics, Springer;Society for Computational Economics, vol. 51(4), pages 743-760, April.
    10. Vincy Fon & Francesco Parisi, 2008. "Matching rules," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 57-70.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:26:y:2005:i:6:p:397-405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.