A Study on Optimal Pricing and Production Strategies for Duopoly Firms in Market Channel by Using Game Theory

• Main Authors: Ya-Jen Yu, 游雅任
• Other Authors: Yun-Cheng Huang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/03748647175379565759

碩士 === 國立屏東科技大學 === 工業管理系所 === 95 === How to use the firm’s own ascendancy creating more benefit is a goal of the firm to achieve sustainable. Beside the ascendant production, the ascendancy in channel is a key factor to earn profits. Channel power will affect to the price negotiation and then influence the firm’s profit. Therefore, if the firms get wise to their rules and influence, moreover using these advantages to choose better price and production quantity, it will bring more profit to firms. Over the years, the problems of channel power being studied are usually dealt with the terms of manufacturer-dominant or retailer -dominant marketing channel, but just few study on asymmetrical-dominant marketing channel. Consequently, this study intended to apply the sub-game perfect equilibrium concept through two side duopoly within asymmetrical -dominant channel. On two conditions of the productions with substitute or complementary property, we hope to find the equilibriums. Given two manufacturers with the different cost structures, we hope to discuss the relations among manufacturers' wholesale price, the retailers' selling price and market demand. Then we find that when a manufacturer has a higher production costs than the other, it's wholesale price will be getting higher. Therefore, the retailer's selling price will be getting higher and market demand will become less as well. After analyzing and contrasting these, we derive best solution of pricing and production quantities for manufacturers and retailers. Furthermore, we provide an example to explain and analyze the relations of five Channel power and vertical integration conditions. Finally ten conclusions are drawn for future studies and practical applications.