Incumbent responses to new entrants with considering the Game Theory approach (Case study: Taxi, Snapp and Tap30)

Actual research determines based on what mechanisms the incumbents can compete with the entrants. For this reason, we want to find out the influence of every each of the mechanisms (price, innovation and branding) that Taxi as an incumbent needs to rely on to compete with Snapp and Tap30. In actual research, the uncooperative model of Snapp and Tap30 is developed considering the game theory. Results of the research indicate that as innovation and branding costs increase, the demand for using provided services of Snapp and Tap30 increases as well. On the other hand, the increase in innovation and branding costs, leads to decrease for demand and pay-off for Taxi services. Therefore, If Taxi wants to stay in competition with Snapp and Tap30, it only needs to react to pricing and to determine the price of provided services close to Snapp and Tap30.