Nash's Theory of Cooperative Games as a Predictor of the Outcomes of Buyer-Seller Negotiations: An Experiment in Media

Game theory is employed to predict outcomes of buyer- seller interactions. A major theory is J.F. Nash's theory of cooperative games. A framework is identified to define the role of Nash's cooperative game theory for analysis of buyer-seller interaction. Nash's theory is employed to predict the outcome of a media purchasing experiment. The necessary methodology to test Nash's theory is demonstrated. Conflict, power and influence are the main components of buyer-seller negotiations, with the conflict factor approached by Nash's theory. Results reveal the predictive power of Nash's theory.