analysis of out price war（分析了价格战）.docVIP

Analysis of out price war [Abstract] price war between companies led both sides into a “prisoner’s dilemma” of the difficult situation, the interests of both sides suffered damage, both sides have made exactly the opposite result with the original intention, so under normal circumstances, companies should be avoided for parties adverse price war. in order to get out “price war” troubles, we must update the market concept, innovation breeds innovation in business strategy, new product development efforts on the competition instead of price competition in technology. [Keywords:] Prisoner’s Dilemma game theory price war Chinese goods on the market price war in China, under specific historical conditions occur, is in a planned economy to a market economy, from the “seller” to “buyer’s market” changes generated. By the theory of game theory, competition will often consider only the share of the market share price increase, without considering the impact of profits on both sides. First, the price war based on the “prisoner’s dilemma” of the theoretical analysis Prisoner’s Dilemma (Prison Dilemma) is non-zero-sum game theory in a representative sample, not the best choice for groups to reflect personal choice. The price war, competitors, business and non-cooperative game the game the two sides of the strategy for the price and not price. for the analysis of simplicity, consider an industry now only A, B two companies, production homogeneous, completely replace the goods, completely occupy the market share price before the revenue of both are now a R. enterprises price reduction strategy to expand its market share, then do not take into account the other’s strategy, that company B does not cut prices, the price increase a company’s profits by a, then B will be the loss of business profits amounted to a. If the B companies to implement price-cutting strategy, and with a price cut as many companies, the corporate profits and B will face the same loss b, and