An Empirical Study for Competition Case between Iraqi Telecommunication Companies Using Game Theory

experiencing a huge competition in the market nowadays. Each company is striving to attract more customers through providing satisfactory and competitive services. In this study, Game Theory, which is one of the operational research modeling techniques is selected then used to evaluate performance of a number of telecommunication companies in Iraq after reconstruction. This research is set out to analyze the competition models of two leading telecommunication companies using Game Theory. Two local telecommunication companies based in Iraq; Asia Cell and Korek is used as a case study. Game theory methods are applied to provide some advices on how to maximize profits of the selected companies. This is enabled by studying the strategies (services) offered by each company, and formulating a payoff matrix of competition between these companies. The payoff matrix size is (9 × 5) represented by (9) strategies adopted by Asia Cell Company, and (5) strategies adopted by Korek Company. The manual method shows that there is no saddle point for the payoff matrix. As there is no saddle point found for the payoff matrix, size of this matrix is reduced to (2 × 3) to enable solving it using the graphical method. As a conclusion, Asia Cell should always use strategies of 8th (selling the International Line) and the 9th (selling the New Khalat Line), to get the expected optimal value (higher profit expected), is equal to v = 68053291 ID. While, Korek should always use the 2nd (selling the Data Offers) and the 3rd (selling Diary Line) strategies to get the expected optimal value (which will bring less losses), is equal to v = 68053291 ID. TORA package is used to provide results which are close to the manual solution method