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On Domination Game Analysis for Microeconomic Data Mining

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Executive Summary

Game theory is a powerful tool for the analysis of the competitions among manufacturers in a market. This paper presents a study on combining game theory and data mining by introducing the concept of domination game analysis. The paper presents a multidimensional market model, where every dimension represents one attribute of a commodity. Every product or customer is represented by a point in the multidimensional space, and a product is said to "Dominate" a customer if all of its attributes can satisfy the requirements of the customer. The expected market share of a product is measured by the expected number of the buyers in the customers, all of which are equally likely to buy any product dominating him.

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