Game Theory in Medical Aesthetics Industry: Evidence from Consultation and Plastic Surgery Department

Abstract

Currently, the medical aesthetic industry is experiencing rapid growth. On this basis, this study develops the potential usage of game theory in medical aesthetic industry. To be specific. This research mainly focuses on decision making processes in consultation and competition between public and private medical institutions. Based on the analysis of strategic interactions between doctors and patients during consultations, as well as the competitive dynamics between public and private institutions, this study reveals how game theory models, such as the Stackelberg competition, can evaluate pricing strategies and market behaviors. However, several limitations are worth noted during applications due to the variable real-life condition according to the analysis and suggestions for further exploration are proposed at the same time. Those external factors may influence the accuracy of the predictions and decisions made by the model. Overall, despite those uncertain factors existed, game theory is a valuable tool in medical aesthetic industry.