Game Theory: An Application to Tanners and 'Pomo' Wholesalers in Hides Marketing Competition in Nigeria

Abstract

This study was conducted in Kano State to determine the level of competition between the tanners and 'pomo' wholesalers in hides marketing competition in Nigeria. Kano State was used because over 85% of tanneries in Nigeria are found in Kano State. It is also the centre for hides purchase as 'pomo' by 'pomo' wholesalers. 'Two persons zero sum game' was used in determining the level of competition between tanners and 'pomo' wholesalers. Most often hypothetical data were used in game theory analysis. Agricultural economics is an applied social science so game theory was applied practically from a field survey to determine the level of competition between tanners and 'pomo' wholesalers in Nigeria. All the thirteen functional tanneries and the thirty registered 'pomo' wholesalers were used for the study making a total of forty three respondents. Primary data were collected through the use of structured questionnaire. The structure questionnaire was designed to elicit information from the tanners and 'pomo' wholesalers. The result of the analysis revealed that market share of hides was 30% to 70% for tanners and 'pomo' wholesalers respectively. There was relatively low competition between tanners and 'pomo' wholesalers in Nigeria. 'Pomo' wholesalers had larger share of market in hides marketing competition. There is significant difference in the quantity of hides purchased by tanners and that of 'pomo' wholesalers. It was recommended that livestock production should be supported by the various arms of government so that quality hides can be produced for tanning and 'pomo' consumption

Keywords: Game theory, tanners, 'pomo' wholesalers, hides, competition, Nigeria.