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

Abstract

Aim: To determine the level of competition between the tanners and ‘pomo’ wholesalers in hides marketing competition in Nigeria. Study Design: The study is a survey, structure questionnaire was designed to elicit information from the tanners and ‘pomo’ wholesalers. Place and Duration of Study: The study was conducted in Kano State where over 85% of tanneries in Nigeria are found. It is also the centre for hide purchase as ‘pomo’ by ‘pomo’ wholesalers. The research was conducted in 2011. Methodology: ‘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 (13) functional tanneries and the thirty (30)  known ‘pomo’ wholesalers were used for the study, making a total of forty three (43) respondents.  Primary data were collected through the use of structured questionnaire. Results: 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. Conclusion: ‘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.