Game Analysis of Google’s Information Dissemination Strategy in China

Abstract

This paper addresses the issues that arise when corporations are required to make strategic choices regarding operation in foreign countries with diverse socio-political systems and culture, while taking into consideration all the relevant stakeholders, which ultimately affects the corporations’ current and future payoffs. Using the game theory principles we focus on Google’s internet search operations in China, particularly information dissemination decisions, and we examine how Google’s decisions affect the corporation’s success on the Chinese market, which is additionally determined by the information regulation policy of the Chinese authorities. In view of the fact that goals of Google and Chinese authorities are partially overlapping and partially conflicting this perfect information game contains both competitive and cooperative elements. In this paper we will argue that for Google or any other company in the equal situation the best strategic choice would be to respect and follow the laws and restrictions set by the authorities of the country in which the company chooses to operate. Finally, an analysis is completed through determining the optimal strategy for Google and Chinese authorities and finding the equilibrium point.