Study On The Dynamics Characteristics Of Oligopoly Game Based On The Impacts Of Consumers' Bounded Rational Behaviors

It has been widely recognized in both theoretical research field and practical application field that there are many factors that affect the purchase decisions of customers,where some bounded rational behaviors play significant roles.However,it still has not been fully studied yet that what effects do these bounded rational behaviors have on the dynamics characteristics of the oligopoly game and how should firms deal with these effects.Based on previous studies,this dissertation investigates the impacts of four kinds of customers' bounded rational behaviors on the dynamics characteristics of oligopoly game separately and analyzes the effectiveness of the decision-making mechanisms of firms in face of these bounded rational behaviors.Some corresponding managerial insights are provided based on the analysis results.The main contents of this dissertation contain:1.This dissertation builds a demand function,which depends on the internal reference price effect of customers.The dynamics characteristics of the oligopoly game are studied when two competitive firms adjust their decisions based on marginal profit information.The stability condition of the equilibrium point is provided,and the impacts of key parameters on the stability of the equilibrium point are investigated.Finally,some managerial insights are provided for firms to take advantage of internal reference price effect via delay decision.2.The oligopoly game is considered in a market with two firms producing similar products,where the demands depend on external reference price effect of customers.The dynamics characteristics of the oligopoly game are investigated respectively when two product providers have complete information and bounded information.The stability of equilibrium point and the dynamic behaviors of the oligopoly game are studied.Finally,the impacts of some key parameters and the advantages/disadvantages for firms to make use of the two-stage consideration are analyzed.3.This dissertation considers the oligopoly game in a supply chain with cooperative advertising,where the demand of customers depends on the advertising investments.This dissertation distinguishes the different impacts between manufacturer's national advertising and retailer's local advertising and considers the spillover effect between them.The static Stackelberg equilibrium,the dynamics characteristics of the cooperative advertising game and the effectiveness of the cooperative advertising strategy are investigated.The results of this dissertation show that cooperative advertising can benefit both manufacturer and retailer if the manufacturer chooses an appropriate subsidy rate.What's more,this adjustment mechanism is robust in converging.4.This dissertation constructs a demand function,which depends on the herd behavior of customers.The impacts of the herd behavior on the dynamics characteristics of oligopoly game are investigated respectively under three scenarios,which include product providers adopt the demand-based pricing policy,product providers use the optimal supply policy and product providers adjust their supplies dynamically based on marginal profit information.The results show that the herd behavior of customers may result in multiple equilibria,history-dependent behaviors exist in this dynamic system,and the supply side may alternately show order evolution and disorder evolution.This study provides some theoretic instructions for firms to take advantage of the herd behavior of customers.