scholarly journals Two-Player Location-Price Game in a Spoke Market with Linear Transportation Cost

2021 ◽  
Vol 2021 ◽  
pp. 1-5
Author(s):  
Xiaofeng Chen ◽  
Qiankun Song
Keyword(s):  
Price Competition ◽  
Transportation Cost ◽  
Market Model ◽  
Two Stage ◽  
Hotelling Model ◽  
Price Game ◽  
Location Equilibrium ◽  
Price Patterns

This paper investigates the location game of two players in a spoke market with linear transportation cost. A spoke market model has been proposed, which is inspired by the Hotelling model and develops two-player games in price competition. Using two-stage (position and price) patterns and the backward guidance method, the existence of price and location equilibrium results for the position games is proved.

scholarly journals Location-Price Game in a Dual-Circle Market with Different Demand Levels

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Xiaofeng Chen ◽  
Qiankun Song ◽  
Luqing Rong ◽  
Zhenjiang Zhao
Keyword(s):  
Price Competition ◽  
Algebraic Expression ◽  
Market System ◽  
Quartic Equation ◽  
Price Structure ◽  
Price Game ◽  
Spatial Game ◽  
Location Equilibrium ◽  
The Relationship ◽  
Circle Model

This paper researches a location-price game in a dual-circle market system, where two circular markets are interconnected with different demand levels. Based on the Bertrand and Salop models, a double intersecting circle model is established for a dual-circle market system in which two players (firms) develop a spatial game under price competition. By a two-stage (location-then-price) structure and backward induction approach, the existence of price and location equilibrium outcomes is obtained for the location game. Furthermore, by Ferrari method for quartic equation, the location equilibrium is presented by algebraic expression, which directly reflects the relationship between the equilibrium position and the proportion factor of demand levels. Finally, an algorithm is designed to simulate the game process of two players in the dual-circle market and simulation results show that two players almost reach the equilibrium positions obtained by theory, wherever their initial positions are.

scholarly journals Complexity Analysis for Price Competition of Agricultural Products with Regional Brands

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Haolong Liu ◽  
Xin Su ◽  
Xiaohui Wang ◽  
Xiao Li
Keyword(s):  
Price Competition ◽  
Complexity Analysis ◽  
Delayed Feedback ◽  
Agricultural Products ◽  
Market Model ◽  
Price Adjustment ◽  
Price Expectation ◽  
Pricing System ◽  
Agricultural Business ◽  
The Stability

The disordered price competition among various agricultural business agents leads to chaos of agricultural products’ prices, which makes it difficult for customers to form stable price expectation and correct brand cognition, restricting the sales of agricultural products with regional brands. Based on the Salop circular market model with bounded rationality and delayed feedback, this paper discusses the complexity in price competition of agricultural products with regional brands. It is found that when the price adjustment speed of agricultural business agents exceeds the stability region, the pricing system of agricultural products with regional brands would appear the phenomenon of periodic bifurcation or chaos. The delayed feedback controlling mechanism of price adjustment could make the pricing system in the chaos state turn to the equilibrium state. Therefore, the price fluctuation of agricultural products with regional brands needs reasonable control from the industrial associations and government departments.

scholarly journals Price competition in the Hotelling model with uncertainty on costs

Optimization ◽  
2014 ◽  
Vol 64 (11) ◽  
pp. 2477-2493 ◽  
Author(s):  
Alberto A. Pinto ◽  
Telmo Parreira
Keyword(s):  
Price Competition ◽  
Hotelling Model

Analysis of Game Theory on the Price of Supply Chain Based on Bertrand Model

2011 ◽  
Vol 135-136 ◽  
pp. 274-278
Author(s):  
Lan Xia ◽  
Ting Ting Song
Keyword(s):  
Game Theory ◽  
Product Differentiation ◽  
Price Competition ◽  
Market Competition ◽  
Theory Analysis ◽  
Core Competitiveness ◽  
The Core ◽  
Price Game ◽  
Bertrand Model ◽  
The Core Competitiveness

As market competition intensifies, Price competition as the most common and effective way of market competition among operators is quite active. Used game theory, analysis price game and inter-enterprise competition by Bertrand model, and illustrated the importance of product differentiation and build the core competitiveness by case.

scholarly journals Price and location equilibria in a circular market: a pure vs a mixed duopsony with a co-operative

2013 ◽  
Vol 59 (No. 8) ◽  
pp. 341-347
Author(s):  
P. Fousekis ◽  
D. Panagiotou
Keyword(s):  
Large Distance ◽  
Price Competition ◽  
Pure Strategy ◽  
Private Firm ◽  
Private Firms ◽  
Market Structures ◽  
Primary Commodity ◽  
Location Equilibrium ◽  
Price War

The objective of the present paper is to analyze the location-price competition in circular markets where the power lies with the buyers. To this end, it considers two alternative market structures. Namely, the pure ones, where the buyers of a primary commodity are private firms, and mixed ones, where a private firm competes against a producer’s co-operative. According to the results, the pure-strategy location equilibrium in both cases involves a distance between the two players larger or equal to 1/4. Nevertheless, the equilibriums are qualitatively different. In the pure duopsony, a large distance is required to prevent a price war while in the mixed duopsony, the private firm tries to stay away from the co-op in order to ensure a strictly positive profit.    

Numerically Stable Design Optimization With Price Competition

2014 ◽  
Vol 136 (8) ◽  
Author(s):  
W. Ross Morrow ◽  
Joshua Mineroff ◽  
Kate S. Whitefoot
Keyword(s):  
Price Competition ◽  
Performance Metrics ◽  
Consumer Preferences ◽  
Market Model ◽  
Optimal Designs ◽  
Future Price ◽  
Design Decisions ◽  
Computational Optimization ◽  
Game Theoretic ◽  
The Impact

Researchers in decision-based design (DBD) have suggested that business objectives, e.g., profits, should replace engineering requirements or performance metrics as the objective for engineering design. This requires modeling market performance, including consumer preferences and competition between firms. Game-theoretic “design-then-pricing” models—i.e., product design anticipating future price competition–provide an important framework for integrating consumer preferences and competition when design decisions must be made before prices are decided by a firm or by its competitors. This article concerns computational optimization in a design-then-pricing model. We argue that some approaches may be fundamentally difficult for existing solvers and propose a method that exhibits both improved efficiency and reliability relative to existing methods. Numerical results for a vehicle design example validate our theoretical arguments and examine the impact of anticipating pricing competition on design decisions. We find that anticipating pricing competition, while potentially important for accurately forecasting profits, does not necessarily have a significant effect on optimal design decisions. Most existing examples suggest otherwise, anticipating competition in prices is important to choosing optimal designs. Our example differs in the importance of design constraints, that reduce the influence the market model has on optimal designs.

scholarly journals An integrated inventory model with variable transportation cost, two-stage inspection, and defective items

2017 ◽  
Vol 13 (4) ◽  
pp. 1975-1990 ◽  
Author(s):  
Biswajit Sarkar ◽  
◽  
Bijoy Kumar Shaw ◽  
Taebok Kim ◽  
Mitali Sarkar ◽  
...  
Keyword(s):  
Transportation Cost ◽  
Inventory Model ◽  
Two Stage ◽  
Defective Items ◽  
Integrated Inventory Model ◽  
Integrated Inventory

scholarly journals Price Competition and Product Differentiation when Goods have Network Effects

2006 ◽  
Vol 7 (3) ◽  
pp. 339-361 ◽  
Author(s):  
Klaus Conrad
Keyword(s):  
Natural Gas ◽  
Market Structure ◽  
Product Differentiation ◽  
Price Competition ◽  
Network Effects ◽  
Environmental Awareness ◽  
Environmentally Friendly ◽  
Two Stage ◽  
Horizontal Product Differentiation ◽  
Stage Game

Abstract The objective of our approach is to develop a model that captures horizontal product differentiation under environmental awareness with price competition whereby environmentally friendly products are costlier to produce. As an example, we refer to automobile producers offering cars with a gasoline-powered engine and one with a natural gas-powered engine. The network of petrol stations provides the complementary good. We use a two-stage game in prices and characteristics to analyse the market structure. In order to find out whether a private decision on the type of engine coincides with a socially optimal product differentiation, we determine the position of the two types of engine by a welfaremaximizing authority.

scholarly journals A Two-Stage DSS to Evaluate Optimal Locations for Bioenergy Facilities

Forests ◽  
2020 ◽  
Vol 11 (9) ◽  
pp. 968
Author(s):  
Sam Van Holsbeeck ◽  
Sättar Ezzati ◽  
Dominik Röser ◽  
Mark Brown
Keyword(s):  
Supply Chain ◽  
Biomass Conversion ◽  
Cost Model ◽  
Forest Biomass ◽  
Transportation Cost ◽  
Cost Effective ◽  
Transport Cost ◽  
Two Stage ◽  
Fuel Price ◽  
Facility Locations

Research Highlights: A set of 128 potential bioenergy facility locations is established and evaluated based on the transport cost to select optimal locations. Background and Objectives: The identification of optimal facility locations to process recovered forest biomass is an important decision in designing a bioenergy supply chain at the strategic planning level. The result of this analysis can affect supply chain costs and the overall efficiency of the network, due to the low density and dispersed nature of forest biomass and the high costs associated with its logistics operations. In this study, we develop a two-stage decision support system to identify the optimal site locations for forest biomass conversion based on biomass availability, transport distance and cost. Materials and Methods: In the first stage, a GIS-based analysis is designed to identify strategic locations of potential bioenergy sites. The second stage evaluates the most cost-effective locations individually using a transportation cost model, based on the results from stage one. The sensitivity of inputs, such as maximum allowable transport cost, the distance of transport and their relations to the profit balance, and changes in fuel price are tested. The method is applied to a real case study in the state of Queensland, Australia. Results and Conclusions: The GIS analysis resulted in 128 strategic candidate locations being suggested for bioenergy conversion sites. The logistics analysis estimated the optimal cost and transportation distance of each one of the locations and ranked them according to the overall performance between capacities of 5 and 100 MW.

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