Game Theory Analysis of Advertising Promotion and Business Strategy Optimization

Abstract

Advertising, a cornerstone of modern commerce, presents a complex strategic landscape where firms and consumers interact with conflicting and aligned interests. This paper employs game theory to analyze these dynamics and propose strategies for optimizing business outcomes. Advertising and promotion are of great importance, necessity, and value. It is everywhere in life and is related to the economic development of society and even the entire country. This paper explores and studies from the perspectives of both buyers and sellers, as everyone hopes to maximize their own interests. It can be said that game theory has become a very significant and common way of thinking and application in daily life. Through the research on this topic, people can effectively understand game theory in life, better think about its logic and advantages and disadvantages, and think about its positive and negative impacts from multiple perspectives, and find possible solutions. The findings offer practical value for businesses seeking to optimize advertising strategies and for policymakers aiming to foster a healthier, more transparent market ecosystem.