Applying Delay Gratification Theory In Indonesia Non-cooperative Spare Part Industry

Indonesia has the largest economy in South East Asia and expected to be the fourth-largest economy in the world by 2050.Indonesian industry is also likely to improve,and the need for machinery production in Indonesia will increase.However,along with the increase of the needs of machinery and its spare parts,competition in the Indonesian spare parts market is going fiercer day by day.The market has attracted both National and International spare parts companies and makes them fight against each other to obtain the largest share of the market.Indonesian spare part industry also has unique traits as most of the player sells almost the same products but varied in price,so it almost resembles a competitive market.Non-cooperative behavior is commonly encountered in the Indonesian spare part industry as the government provides no incentive for cooperation and treat companies differently.Hence,it causes each of the spare part company to devise their strategy without consulting each other.The game theory model always discusses the decision-making process and the player’s rational thought while selecting the best solution to counter each player’s strategies to obtain a direct benefit.However,non-cooperative games trapped competing players inside the dilemma and causing them to make poor decisions.In the other hand,from the psychology point of view about decision making,the marshmallow test always give particular two kinds of option for a player whether to choose it is an immediate victory or a long-term one.Marshmallow test proved that individuals who can delay gratification are most likely to have more advantages among their peers in the long-run.Applying the marshmallow test concept of delay gratification at a corporation level in a non-cooperative market should be possible for a company not to be trapped in a dilemma and perform better eventually.To sum up,this research result is not against the non-cooperative game,but complementary to the non-cooperative game.The purpose of the research is to give a player understanding of the benefit of delay gratification inside non-cooperative games,to make a rational decision to gain the maximum benefit,avoid getting trapped inside the dilemma,and not hurt the market in the process by providing a flowchart as guidance.