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| Content Provider | IEEE Xplore Digital Library |
|---|---|
| Author | Wenxin Xie Mengmeng Liu Keqiang Li Yougui Wang |
| Copyright Year | 2008 |
| Description | Author affiliation: Dept. of Syst. Sci., Beijing Normal Univ., Beijing (Wenxin Xie; Mengmeng Liu; Keqiang Li; Yougui Wang) |
| Abstract | In this paper we study a duopoly game in which two firms decide their product qualities in the first stage and set prices in the second stage. The two firms are bounded rational so that they adjust the price gradually according to the marginal profit. We examine a discrete dynamic system and analyze stability of the equilibrium. The parameter space for existence of the stable equilibrium is specified. Some numerical evidences are also presented. We conclude that the equilibrium will lose its stability when firms adjust the price unduly. Maximal quality gap will benefit both of them, but the one with high quality may not get advantage when marginal cost is large enough. |
| Starting Page | 1 |
| Ending Page | 4 |
| File Size | 132700 |
| Page Count | 4 |
| File Format | |
| ISBN | 9781424421077 |
| DOI | 10.1109/WiCom.2008.2350 |
| Language | English |
| Publisher | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Publisher Date | 2008-10-12 |
| Publisher Place | China |
| Access Restriction | Subscribed |
| Rights Holder | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Subject Keyword | Analytical models Costs Production Nash equilibrium Numerical simulation Stability analysis Numerical models Game theory Quality management Oligopoly |
| Content Type | Text |
| Resource Type | Article |
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