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Cournot Competition and Strategic Output Decisions in The Butali and Nzoia Kenyan Sugar Industries: A Game Theory Perspective
Subject area: Arts, Social Sciences and Humanities · Area of research: Economics
Abstract
This study explored the strategic output decisions of Butali and Nzoia Sugar Companies in Kenya through the lens of Cournot competition, a foundational model in game theory for analyzing oligopolistic markets. By analyzing production data, market prices, and cost structures, the study derives equilibrium outputs and compares them to actual firm behavior. Findings reveal substantial deviations from theoretical predictions, highlighting inefficiencies, policy influences, and structural constraints in the industry. The findings contribute to a better understanding of industrial dynamics within the Kenyan agricultural processing sector and provide policy recommendations for enhancing efficiency and competitiveness.
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How to cite this paper
@article{1708675,
author = {Noel Luvanga Mulievi, Dr. Yasin Ghabon},
title = {Cournot Competition and Strategic Output Decisions in The Butali and Nzoia Kenyan Sugar Industries: A Game Theory Perspective},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {11},
pages = {1778-1785},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1708675.pdf},
abstract = {This study explored the strategic output decisions of Butali and Nzoia Sugar Companies in Kenya through the lens of Cournot competition, a foundational model in game theory for analyzing oligopolistic markets. By analyzing production data, market prices, and cost structures, the study derives equilibrium outputs and compares them to actual firm behavior. Findings reveal substantial deviations from theoretical predictions, highlighting inefficiencies, policy influences, and structural constraints in the industry. The findings contribute to a better understanding of industrial dynamics within the Kenyan agricultural processing sector and provide policy recommendations for enhancing efficiency and competitiveness.},
month = {May},
}