Industrial Engineering Letters www.iiste.org ISSN 2224-6096 (Paper) ISSN 2225-0581 (online) DOI: 10.7176/IEL Vol.9, No.4, 2019 65 The Impact of Government Policy on Food Pricing Using Game Theory Negin Deljouyan Davood Jafari * Asghar Darigh Department of Industrial Engineering,College of Engineering,Parand Islamic Azad University,Parand,Tehran,Iran Abstract In this research, a model based on the theory of competitive games using Nash equilibrium and in the presence of a retailer for the purpose of food pricing was presented in terms of state competition and policy. Considering the effects of government competition and policy on the issue, we are trying to make a model more in line with real-world conditions and used by managers and practitioners in the food industry. Ultimately, the sensitivity analysis plant production costs were taken and the effect of changes in parameters on the variables of the research was measured. Keywords: pricing, food products, competition, government policy, game theory. DOI: 10.7176/IEL/9-4-06 Publication date:May 31 st 2019 Introduction Today, with the industrial and economic development, the number of manufacturers in each industry has increased sharply and customers can choose from a variety of brands. In fact, the right to choose customers has increased dramatically, and they do not have to be limited to a specific brand. According to these, manufacturers have no choice but to arm new tools in order to attract customers. In particular, companies and organizations of the nature of production must sell their products in any way, and this can be achieved by purchasing customers so that organizations seek to satisfy their customers and strive to maintain their market and survival. In this regard, there have been some solutions, one of which is supply chain management. Over the past decades, supply chain management has been highly regarded by researchers. Trade globalization, increased competition, and closer alignment of products in terms of quality are among the issues that have pushed industries and research institutes into further studies on more efficient and effective management of operations. Hence, studies in the supply chain have been developed and researchers and officials have always tried to use the supply chain management techniques to match business processes and activities between the relevant levels in order to improve the overall performance and efficiency of the supply chain. (Pahlavani, 2014). In the past, most of the decisions regarding the supply chain of companies, such as inventory control, pricing, supplier relations, and similar issues, were based on the experience of corporate management or the expertise of the companies concerned. But today the complexity of the business environment, as well as the decisions to be made, necessitate the adoption of precise scientific approaches to help management to make critical decisions in the supply chain (Chapman and Razi Bazaki, 2016). One of these very important decisions is the pricing of products that has a significant impact on the success of manufacturing and service companies (Ki and Bai, 2017). For this purpose, it is necessary to use the tools and techniques available to provide tools to help managers of manufacturing companies to determine the optimal price of manufactured items. Research methodology There are several ways to conduct research in which choosing a research method depends directly on the purpose, subject, and facilities. In other words, the purpose of choosing a research method is to determine whether the researcher wants to use which approach to achieve the goals and answer research questions. Choosing an appropriate research method can help researchers to access research goals faster and more accurately, and possibly at a lower cost, so that choosing the appropriate research method is very important. One of the most important factors that can guide the researcher is to make him more accurate, easier, faster and less costly to pursue his research and obtain more reliable results from his findings. Choosing the appropriate research method is reasonable. Categorization of research based on the purpose Scientific research is divided into three categories according to the purpose: Research and Development Fundamental research Applied research.